Organizations exist because of their ability to create value and acceptable outcomes for stakeholders. List several stakeholders an organization needs to be aware of. Describe and explain how organizations create value and influence these stakeholders? What is the role of entrepreneurship in this process?
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An organization is made possible by its human component, its human capital. Sociologically speaking, a business or a company is a social group, secondary or referential in nature, made up of the people that consider themselves as members of the organization. Beyond membership however there is another human component. These are the stakeholders. Stakeholders are individuals and groups that can affect or be affected by the actions of the organization as a whole. The notion of 'stakeholders' had been introduced in 1963 by the Stanford Research Institute to describe and explain the importance of considering and factoring into any plan or strategy elements and concerns that would affect "individuals or organizations who stand to gain or lose from the success or failure of a system" (Nuseibeh & Easterbrook, 2000). Broadly, it means anyone who has an interest in any matter or element in the organization's purview. As an example, let us take a sample organization - a school. So, who would be the stakeholders? First-off, it's students, pupils, teachers and support staff. Then we have the parents of the children, their families, the school board and the greater Academic organization that oversees the school for the county and for the state. Then we have the community that the school is a part of (since the school is the academic and social training ground that shapes the behavior and knowledge of their young) and in the broader view, we have the greater society who will be affected by the actions of the ...
The stakeholders of an organization is discussed and explained in this solution, in particular how organizations create value and influence on them as well as the role of entrepreneurship. References are listed for further exploration of the topic. A word version of the solution is attached.