Balancing Stakeholders Interests In Case Of A Conflict Essay - 2

Balancing Stakeholders Interests In Case Of A Conflict - Essay Example The CAW accepted a wage freeze that would last three years approximately. Vacations would have to go for lesser time and employees would have to contribute higher towards their benefit plans. From the abstract what is clear is that the bailout necessitated that employees do most of the heavy lifting. Suffering wage cuts, taking shorter vacations while the owners who happen to also be external stakeholders do not seem to suffer that much. How then can the interest of employees and shareholders be balanced in case a conflict arises? To answer this question I will use Edward Freeman’s stakeholder’s theory to delve in depth into this issue pitting both moral responsibilities and profit maximization objectives of the business unit. Stakeholder hypothesis is a theory of executive management and trade ethics that deals with principles and values in running an organization. In the conventional view of the firm, the investor view, they are the proprietors of the company and the corporation has a compulsory duty to put their needs first, to boost value for them. Stakeholder conjecture fights that there are added parties involved, including workers, clientele, providers, investors, society, legislative bodies, political lobby groups, trade links, and unions. Even rivals are sometimes counted as stakeholders - their position being consequent from their aptitude to affect the company and its stakeholders. The nature of what is a stakeholder is extremely contested The stakeholder view of policy integrates equally a resource and a market-based view and adding up a socio-political stage. This outlook of the corporation is used to describe the precise stakeholders of a firm (the normative presumption (Donaldson) of stakeholder identification) mutually examines the conditions beneath which these parties ought to be treated as stakeholders.