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Showing posts with the label stakeholder theory

The Benefits of Creating Win-Win Strategies as San Diego Goes Global

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San Diego has decided that it is going to make a firm commitment to the global economy. An initiative of 30+ companies, San Diego Regional Economic Development Corporation, UC San Diego and the City of San Diego want to expand growth opportunities in the area by creating more export opportunities. Those export opportunities result in higher wages and more jobs but will rely heavily on win-win strategic outcomes. Mayor Kevin Faulconer describes the Going Global initiative as "Opportunities and innovation abound in San Diego and it's time to tell the world ( 1 )." The goal appears to be about getting products out of San Diego and into the global market while drawing investment into the region to capitalize on the core competencies of life sciences, blue technology and cyber knowledge. According to the Go Global San Diego initiative San Diego is the 17th largest U.S. metro city, ranks 61st in terms of export intensity and 49th in terms of foreign-owned firms ( 2 ). Sa

Leadership Through Stakeholder Collaboration

Leadership is a necessary component of moving groups from one performance level to another. Leaders provide a focal point for collective action, a voice to the will of the people and decision-making capacity when problems arise. Responsible leaders are able to bring stakeholders together to accomplish some important goal. This isn’t possible without considering the multiple stakeholders in any worthwhile activity. According to Doh & Quigley (2014) leaders are able to use psychological and knowledge-based pathways to impact micro/individual, team, organizational, and societal outcomes. Such leaders have the personal capacity to see how daily activities can impact larger groups of stakeholders to create higher levels of impact. Responsible leaders can impact organizational processes and outcomes to achieve goals. Consider the different types of stakeholders interested in an organization and the levels by which these can be categorized. The individual worker has a stake in term

Stakeholder Orientation and Stakeholder Marketing

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Stakeholder Orientation Ferrell, Fraedrich and Ferrell (2013) stated that, “The degree to which a firm understands and addresses stakeholder demands can be referred to as stakeholder orientation” (p. 35).   According to Duesing (2009), one of the primary management theories is the Stakeholder Orientation (SO).      Ansoff (1965) initially discussed SO in terms of “balancing the conflicting claims of the various ‘stakeholders’ in the firm: managers, workers, stockholders, suppliers, vendors. The firm has a responsibility to all of these and must configure its objectives so as to give each a measure of satisfaction” as cited in Duesing. Multiple authors have added to this definition to include the community and environment (Berman et al., 1999) to competitors and other industries (Greenley & Foxall, 1997) as cited in Duesing. Duesing (2009) posits that literature has previously stated that SO positively affects organizational performance.   The results of Duesing’s study s

The Bounded Rationality of Stakeholder Theory

Stakeholder Theory is an organizational management perspective that attempts to defined the nature and purpose of firms/corporations within society. According to its founder Milton Friedman, the purpose of a firm is embedded almost exclusively in the production of wealth for shareholders (Friedman, 1970). Since this time, the concept of stakeholder has been expanded to include the idea that other entities have a particular stake, or interest, in the organization and can influence its success or failure. The theory defines who are the stakeholders in an organization and their rights and obligations to the shareholders as well as society in general. The root of the theory is based off of the premise that its purpose is the, " identification of moral or philosophical guidelines for the operation and management of the corporation " (Donaldson & Preston, 1995). The theory helps to foster the understanding that the needs of the owners should be realized first before other con