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  • Essay / Internal Stakeholder - 1152

    “Companies can no longer say that they exist simply to generate profit for their shareholders. Today, business aspirations extend beyond the financial dimension to encompass contributions to a broader set of societal goals, including those focused on the imperatives of environmental and social responsibility” (Jimena, 2008, p. 9). Stakeholders play an important role in an organization since they influence the success of an organization. Organizational stakeholders or internal stakeholders are individuals directly linked to an organization and who have the ability to influence the business. This stakeholder group includes board members/staff, customers, suppliers, employees, and shareholders (Henriques and Sadorsky, 1999). Stakeholders can influence the strategies and policies of the organization and this will depend on their relationship with the company itself. Internal stakeholders have the ability to influence the progress and outcome of an organization's project since they are involved in the project on a daily basis. When an organization cares about the issues of its internal stakeholders, the project success percentage is higher since the internal stakeholders feel like a priority in the company. Internal stakeholders, especially managers, are important because they communicate the company's goals to all employees. . It is essential to ensure that employees understand what the organization is trying to accomplish and how their roles, dedication and performance contribute to the organization's goal. Employees need to understand how their efforts and work contribute to achieving the company's short- and long-term goals. These short and long term goals of the company must be well communicated to avoid any discrepancies in the work...... middle of paper ...... the company's product if it likes and if he can raise his voice by boycotting a company's product (Henriques & Sadorsky, 1999). Customers are considered one of the key factors in the success of a business because without their help, success is not possible. When customers are satisfied with a product or when they are not, the company is influenced by their choices. Additionally, “a supplier may exercise its influence by stopping delivery of an input if a client company does not comply with a given use (for example, if the company uses the input in a way that harms the reputation of the supplier), or it may push the company to use a more environmentally acceptable substitute” (Henriques and Sadorsky, 1999, p. 89). It is important for the company to have good relationships with suppliers so that cases like those mentioned above do not put the company at risk..