What respose can I give to this it was posted on the discussion board where are

Question

What respose can I give to this it was posted on the discussion board where are talking about stockholdrs and stackholders

My current organization is managed by the stockholder approach. I believe this is appropriate for the size of the company. Considering this it is an international business having stockholders over stakeholders is the best idea. Honestly, I don't the first thing about running a business this size, so I wouldn't know where to start with changes. I am in low level management and don't have enough information about the higher up processes of decision making.

Explanation / Answer

Traditionally, the organization has been using the stockholders concept. Though, it is the narrow concept and it should be replaced by the stakeholders’ concept that already includes the best interests of the stockholders. The stakeholder concept become more prominent as well as relevant when an organization enters into the international business as mentioned in the post. An international business operates into an overseas business environment and it is very important for the business to achieve the higher degree of local acceptability. It is only done, when the international business participates in community development, resolve local issues, follow local guidelines and take care of the environment. Here, the community, regulators, vendors and environment are some of the stakeholders, the organization is dealing with. So, stakeholder approach is already applied and organization reaps the reward and achieves a higher turnover in international business. Hence, the profit towards the stockholders, goes through the stakeholder approach only. Hence, stakeholder approach is the way to conduct business in the modern business environment where the reputation and goodwill earned through the stakeholder theory is very important.
It should start with the top management at the corporate level strategy. The change should flow from here and should go down to the different branches, level and functions of the organization. Initiatives like corporate social responsibility, setting up foundations to help marginalized people, implement corporate governance and applying sustainability across the value chain are going to implement the stakeholder approach in the organization.

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