Managers: Decisions Based on Stakeholders' Interests - Essay Sample

Introduction

Managers should make decisions based on the interests of the stakeholders. I know of many organizations whose decisions are influenced by the stakeholders. Stakeholders involve groups and individuals affected by the operations of the organization (Friedman, 2007). Therefore, both internal and external stakeholders' actions have a significant impact on the organization. They are the largest investors who can either decrease or increase the stakes in a company, depending on the decisions made by the manager. They also offer advice to the management on changing their strategy where necessary.

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Additionally, the internal stakeholders, such as the employees and the owners, are affected by the decisions of the managers. Therefore, the managers should make decisions based on their interests as they determine the viability of a business. Managers have to address the issues facing the stakeholders to ensure workforce commitment (Friedman, 2007). Decisions that hurt the associates may lead to the collapse of the business. Therefore an analytic decision making based on the stakeholders provides a systematic approach to making the right decisions in the organization.

Analysis of the Ethics of Corporate Donations

Currently, corporate donations have been used for strategic goals that link charity and corporate social responsibility to the company's objectives. The contributions may be analyzed based on the target the corporate seeks to achieve in giving. According to the theory of collective empathy, corporate donations are a way of the organizations' response to needy people (Friedman, 2007). The organization is driven by emotional mechanisms such as a shared aspiration to help those in need than by their individual coherent goals to enhance the business. An ethical corporate decision leads to the improvement of human well-being.

Moreover, corporate donations have increased to provide contributions in times of human need. The donations take various forms, such as corporate volunteering and financial programs, to help society (Friedman, 2007). The higher propensity of the organizations to act together capitalizes on the impact of corporate decisions. Therefore, ethical donations are aimed at improving the welfare of people than for gains. However, some companies may participate in a donation for publicity to gain more customers.

Corporate Purpose Regarding the Stakeholder Theory

According to the stakeholder theory, companies have a corporate purpose of enabling people to come together to create the economic value of the business. To achieve success, managers should identify the factors that bring the stakeholders together. They should also identify the issues that affect the stakeholders to ensure a close relationship with the stakeholders (Friedman, 2007). Depending on the stakeholders, the corporation then decides how to run the business and develop the different relationships they want with various stakeholders. They make decisions that are influenced by the stakeholders' interests to lead the organization to success.

Additionally, the corporations should have an aim to establish interconnected interactions with their customers, suppliers, investors, communities, and everyone who has an impact on the business. The managers should aim at creating a shared sense of value that the company establishes (Friedman, 2007). They should engage the employees to increase productivity and ensure significant employee retention. High productivity will ensure that customers receive high-quality goods and services. The company also has the purpose of growing investments. They should, therefore, value the investors as they lead to the growth of the company. The investors also lead to increased market share.

References

Friedman, M. (2007). The social responsibility of business is to increase its profits. Corporate ethics and corporate governance (pp. 173-178). Springer, Berlin, Heidelberg.