Overview Of Stakeholder Management Assignment

Overview Of Stakeholder Management Assignment

For your SLP assignment you will be asked to spend some time reviewing an article on stakeholder management. Stakeholder management is foundational to the practice of business ethics. This is because typically when a company player does something unethical, stakeholders are the ones impacted. As always, some stakeholders may benefit and others may lose, but stakeholders will always be involved. Balancing stakeholder concerns is subsequently an important aspect of ethical decision making. This article provides a good overview of stakeholder management. Overview Of Stakeholder Management Assignment

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Howitt, M., & McManus, J. (2012). Stakeholder management: An instrument for decision making. Management Services, 56(3), 29-34. – This was uploaded as reference 3

Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business Ethics Quarterly, 23(1), 97-124. – This was uploaded as reference 4 and 5

Please use these two sources as well as above and an additional two that are attached if possible, if not, using two outside sources will work as well. Overview Of Stakeholder Management Assignment

The Concept of Stakeholder Management

Stakeholder management is a concept that focuses on recognizing and considering the interests of all stakeholders when making decisions, as well as understanding which groups are affected by those decisions (Terris, 2005). It is a process that involves engaging stakeholders in a meaningful way, understanding their needs and interests, and taking into account their perspectives and opinions when making decisions (Howitt & McManus, 2012)Overview Of Stakeholder Management Assignment. By taking a stakeholder-oriented approach, companies ensure that the decisions they make will benefit all of those involved, while minimizing the potential for conflict and disruption (Harrison & Wicks, 2013). In this case, stakeholders would include the 980 employees, the union representatives, the communities in which the shops are located, the customers who purchase the clothing, and the consulting firm that suggested a different strategy. All of these groups need to be considered when deciding whether to off-shore the manufacturing facilities and discontinue the “Made in the USA” marketing. By engaging with each group and understanding their needs, the company would ensure that its decisions are in the best interest of all stakeholders.

Impact on Specific Stakeholders

The employees and the unions will be greatly impacted by the corporation’s decision to off-shore its manufacturing facilities. The manufacturing jobs will be lost in the small rural communities, leaving many people out of work and with no other source of income. The unionized shops will also be affected, as their collective bargaining agreements may no longer be in effect with the off-shoring of the production. The communities will be severely affected in multiple ways. With the loss of employment opportunities in their areas, many people will be unable to support themselves and their families. This could lead to an economic downturn in the communities and surrounding areas, as businesses dependent on the workers for their income will no longer be able to operate (Bossuyt & Van Kenhove, 2018)Overview Of Stakeholder Management Assignment. For the stockholders, the decision to off-shore the production could be beneficial in the short term. The estimated decrease in the cost of production by one-third could lead to an increase in profits, which could be distributed to the shareholders in the form of dividends or increased stock prices. However, in the long term, the decision to move production away from the United States could have a negative impact on the company’s reputation and lead to a decrease in sales and profits.

Recommendations to the Employer

I would recommend that the employer not off-shore its manufacturing facilities to a poor nation to save money on labor and continue to market its clothing line as “Made in the USA”. Although the estimated total cost per unit of production may be decreased by one-third, the company would be sacrificing its “cult-like” following, generated by its “Made in the USA” marketing, and potentially its reputation as a responsible corporate citizen. As well, by continuing to manufacture their clothing in the United States, the company would be supporting the small rural communities in which it is based and providing employment opportunities for hundreds of employees. The company could still achieve significant cost savings by streamlining its production process, investing in automation, and/or relocating its production facilities to lower-cost states in the US. Ultimately, the decision should come down to what is best for the company and its employees. If off-shoring is the only option for cost savings, then the company should make sure to develop a plan that minimizes the negative effects on the local economy, respects the rights of its employees, and protects the environment in its new manufacturing location Overview Of Stakeholder Management Assignment.

References

Bossuyt, S., & Van Kenhove, P. (2018). Assertiveness bias in gender ethics research: Why women deserve the benefit of the doubt. Journal of Business Ethics, 150(3), 727-739. https://doi.org/10.1007/s10551-016-3026-9

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Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business ethics quarterly, 23(1), 97-124. https://doi.org/10.5840/beq20132314

Howitt, M., & McManus, J. (2012). Stakeholder management: an instrument for decision making. Management Services, 56(3), 29-34.

Terris, D. (2005). Ethics at work: Creating virtue in an American corporation. UPNE. Overview Of Stakeholder Management Assignment