Due Date Sunday At 11:59 Pm Of Unit 4 Points 100 Overview

Due Date Sunday At 1159 Pm Of Unit 4 Points 100 Overview In

In this assignment, you will write a minimum two-page paper that explains the treatment of internal and external stakeholders. In your paper, you will address the following points:

  • Which (internal or external stakeholders), if either, is more important?
  • Why do you feel this to be true?
  • Research and describe one organization that does a great job treating internal stakeholders.
  • Research and describe one organization that does a great job treating external stakeholders.

Requirements:

  • Length: a minimum of two pages, not including title or reference pages
  • Must use a minimum of two resources
  • The final product will be a double-spaced, APA formatted paper

Sample Paper For Above instruction

The significance of internal and external stakeholders in organizational success is a subject of extensive discussion in the field of business management. Internal stakeholders, such as employees and management, are directly involved in the core operations of a company, whereas external stakeholders, including customers, suppliers, and the community, influence and are influenced by an organization’s operations from outside. Determining which type of stakeholder holds more importance depends on various factors, but generally, internal stakeholders are considered more critical because they directly impact the company's internal processes, culture, and productivity, which in turn influence external perceptions and relationships.

Internal stakeholders are vital because they are responsible for executing the strategic goals of the organization. Employees and management create the products or services, uphold the organizational culture, and directly influence performance outcomes. For example, organizations like Google demonstrate a profound focus on treating internal stakeholders well by fostering a culture of innovation, providing competitive benefits, and encouraging professional development. Google's emphasis on internal stakeholder satisfaction leads to higher productivity, innovation, and employee retention, which are directly linked to its market success and reputation.

On the other hand, external stakeholders like customers and suppliers are crucial as they determine the organization's reputation, market share, and financial stability. Apple Inc. exemplifies an organization that excels in managing external stakeholders. Apple maintains strong relationships with its suppliers, ensuring quality and ethical standards, and invests heavily in customer engagement through innovation and high-quality products. By prioritizing external stakeholder needs, Apple sustains its brand loyalty and competitive advantage, exemplifying how external relationships can propel organizational growth and sustainability.

While internal stakeholders are essential for operational efficiency and innovation, external stakeholders are equally vital for ensuring long-term viability and reputation. The importance of one over the other can vary based on organizational goals and industry specifics; however, a balanced and strategic approach to managing both is often most effective. Organizations that succeed understand that internal stakeholders contribute directly to core functions, while external stakeholders influence the broader market environment (Freeman, 1984; Mitchell et al., 1997).

In conclusion, although internal stakeholders often hold more immediate influence over daily operations, external stakeholders are critical for sustained success and reputation management. Companies like Google and Apple demonstrate effective stakeholder management strategies by prioritizing internal and external relationships, respectively. Recognizing the interdependence of these stakeholder groups is vital for developing holistic organizational strategies that promote growth, innovation, and stability.

References

  • Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
  • Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Towards a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886.
  • Harrison, J. S., & St. John, C. H. (1994). Managing and partnering with external stakeholders. Journal of Strategic Management, 15(2), 179–190.
  • Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92–117.
  • Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the value of 'creating shared value'. California Management Review, 56(2), 130–153.
  • Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.
  • Freeman, R. E., & Reed, D. L. (1983). stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88–106.
  • Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886.
  • Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92–117.
  • Harrison, J. S., & St. John, C. H. (1994). Managing and partnering with external stakeholders. Journal of Strategic Management, 15(2), 179–190.

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