An organization’s six stakeholders are Community, Wider Society, Customers, Employees, Owners and Suppliers:
Explain what each expects from the organization:
Community: Participate in community activities and giving returns to the community through corporate social responsibility measures.
Customers: Fair and consistent operations to provide them satisfactory experience.
Employees: Providing them with fair labor laws and non-discriminatory employment experiences.
Suppliers: Establishing fair and honest vendor relationships with suppliers.
Owners: Maintaining loyalty and trusting relationships while maximizing profits.
Society: Taking active participation in society development programs.
Are there any conflicting expectations?
Yes, there are conflicting expectations as sometimes the needs of some stakeholders may be fulfilled at the compromise of the expectations of the other stakeholders.
If so, what are they and how can organizations manage them effectively?
Shareholders need higher returns on their investments.
Employees need healthy working conditions with higher salary packages.
Investors wish that the organizations must deal with environmental issues effectively before just creating capital for the business.
Organizations must formulate business ethical standards which must be explained to all stakeholders and the long-term value they provide to the business must be communicated to stakeholders.
Explain the purpose of clear organizational values, vision, mission and strategy and why all employees need to understand and support them. What happens when employees don’t understand, care about and/or support their organization’s values, vision, mission and strategy?
The purpose of clear organizational values, vision, mission and strategy must be understood and followed by all employees. This is essential as that helps the employees with motivation, guided actions and directions to employees for performing various tasks. These organizational values are embodied in the soul of the company and are inspirational for others.
In cases where the organizational values, mission and vision are not followed by the employees, the performances of the employees will be hindered and the overall success and growth of the organization will also be hampered. If organizational values are not followed effectively by employees, it will result in giving birth to complex and ambiguous conditions.