Overview Of This Assignment: Write A Minimum Two Pages

Overviewin This Assignment You Will Write A Minimum Two Page Paper T

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 paper that is double-spaced, APA formatted pages.

Paper For Above instruction

The relationship between organizations and their stakeholders is vital to understanding business success and sustainability. Stakeholders can be classified broadly into internal stakeholders—such as employees, management, and shareholders—and external stakeholders—including customers, suppliers, regulators, and the community. Analyzing their roles and importance reveals varied influences on organizational operations and strategic decisions. This paper explores the relative importance of internal and external stakeholders, identifies organizations exemplary in stakeholder treatment, and discusses the implications of effective stakeholder management.

Determining whether internal or external stakeholders are more important depends on the context of the organization and its strategic priorities. Internal stakeholders directly influence the organization’s operations, culture, and internal stability, making them indispensable for day-to-day functioning. Employees, for example, are responsible for executing company strategies, maintaining product quality, and fostering innovation. Shareholders provide capital and expect returns, influencing organizational direction through investment decisions. Managers and leadership shape organizational policies and vision, impacting internal stakeholder engagement and performance. Therefore, from an operational standpoint, internal stakeholders are often viewed as crucial for the immediate functioning and stability of an organization.

Conversely, external stakeholders are equally vital, especially in shaping an organization’s reputation, regulatory compliance, and long-term sustainability. Customers influence revenue and market share, while suppliers determine supply chain efficiency. Regulators enforce legal standards that organizations must comply with, affecting operational freedoms and legal standing. The community and society at large influence public perception and social license to operate. External stakeholders’ needs and expectations can significantly influence strategic decisions, product development, and corporate social responsibility initiatives. For example, organizations that ignore external stakeholder interests risk reputational damage and loss of legitimacy, which may be more detrimental in the long run than internal operational issues.

While both stakeholder groups are essential, many scholars and industry leaders emphasize the strategic importance of balancing internal and external stakeholder interests. A balanced approach ensures operational efficiency while maintaining social legitimacy and market competitiveness. Accordingly, external stakeholders’ influence on brand reputation and long-term sustainability often makes them appear more critical in strategic planning, especially in industries sensitive to public perception and regulatory scrutiny.

Many organizations exemplify effective stakeholder management. One such organization is Google, which demonstrates excellence in treating internal stakeholders. Google fosters a corporate culture emphasizing innovation, employee well-being, and participation. The company's commitment to transparency, inclusivity, and professional development exemplifies how internal stakeholders—its employees—are valued. Programs like flexible work hours, comprehensive benefits, and internal recognition initiatives cultivate high employee satisfaction and loyalty (Bock, 2015). Google’s leadership recognizes that motivated and engaged employees are crucial for sustained innovation, which has helped the company maintain its industry leadership and adapt to changing technological landscapes.

On the external stakeholder front, Unilever is often lauded for its responsible engagement with external audiences. The company prioritizes sustainable practices, transparent communication, and corporate social responsibility (CSR). Unilever’s Sustainable Living Plan aims to reduce environmental impact while improving social outcomes, aligning business goals with broader societal interests (Unilever, 2020). By engaging suppliers, consumers, and communities actively, Unilever secures trust and loyalty, reinforcing its brand reputation while contributing positively to society. Its emphasis on stakeholder inclusiveness has enhanced its resilience and market positioning, illustrating effective management of external stakeholders.

The importance of both internal and external stakeholders necessitates that organizations develop comprehensive stakeholder engagement strategies. Internal stakeholder treatment impacts productivity and innovation, while external stakeholder relations influence reputation and license to operate. Organizations like Google and Unilever exemplify best practices in this regard, highlighting the necessity for balanced stakeholder focus. Ultimately, while internal stakeholders are essential for operational success, external stakeholders’ influence on reputation and societal legitimacy often determines long-term sustainability and competitive advantage.

References

  • Bock, L. (2015). Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead. Twelve.
  • Unilever. (2020). Unilever Sustainable Living Plan. https://www.unilever.com/sustainable-living/
  • Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.
  • Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience. Academy of Management Review, 22(4), 853–886.
  • Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management Review, 20(1), 65–91.
  • Phillips, R. (2003). Stakeholders: Advocacy and Conflict. 2nd ed. Berrett-Koehler Publishers.
  • CSR Europe. (2019). Corporate Responsibility and Stakeholder Engagement. https://www.csreurope.org/
  • Bowen, H. R. (1953). Social Responsibilities of the Businessman. Harper & Brothers.
  • Williamson, O. E. (1985). The Economic Institutions of Capitalism. Free Press.
  • Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(1/2), 62–77.

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