Stakeholder Approach To Management Case Study

The concept of a stakeholder approach to management, suggests that managers must formulate and implement many processes to satisfy the groups who have a stake in the firm. The main task in this process is to manage and integrate the relationships and interests of shareholders, employees, customers, suppliers, communities and the other groups in a way that ensures the long-term success of the firm.
A stakeholder approach emphasizes active management of the business environment, relationships and the promotion of shared interests.
There are many groups who have a stake in the success of the firm. The interests of the key stakeholders must be integrated into the purpose of the firm. The stakeholder approach has these advantages:
The stakeholder

To survive in a very turbulent environment management must set direction for the firm. To successfully change direction, management must have the support of those who can affect the firm and understand how the firm will affect others. The stakeholder approach provides no rival to the traditional aim of “maximizing shareholder wealth.” A stakeholder approach rejects the very idea of maximizing a single objective function as a useful way of thinking about management

Rather than set strategy stakeholder by stakeholder, managers must find ways to satisfy multiple stakeholders simultaneously. All stakeholders will not benefit all the time. Win-win situations are not guaranteed.
Examples of applied stakeholder approach
Reading: Five management scandals: what can you learn by Moogy A.
The News Corp hacking scandal. Applying the stakeholder approach in this case, Get to the truth as quickly as possible. Hold management accountable. If you find out that your employees engaged in any illegal behaviour, you should take proper actions. It sends a strong message that your firm won’t condone any form of behaviour that breaks the law. In the News Corp. situation, many staff member were dealt with.
Be open with your findings. You may not like what your employees did, but if reporters ask you specific questions, don’t be evasive with your answers.
Announce new policies in your firm. If your internal investigation into the crisis discovers a serious problem, now it is the time to announce a change in policy. In the case with News Corp., they could have created a new news cycle by announcing a new, stricter code of ethics for reporters and