Stakeholder Approach
Within management, a stakeholder approach is considered to be the practice which managers tend to formulate as well as implement the processes which provide satisfaction to the necessities of the stakeholders to make sure that there is a success that is long term. By the extent of participation from the different groups, an organization is in a position to take advantage of the imperfections within the market to generate valuable opportunities. Its main emphasis is on management, which is active concerning business surroundings, relations as well as the promotion of interests which are shared (Cooper, 2017).
This particular approach is derived from the stakeholder thesis, which results from business practices in addition to management, which concentrates on the satisfaction of the shareholders. Having this approach implemented brings around the opportunity to reinforce the firm’s values and create a competitive advantage. Nevertheless, this approach has gone through various critics because it overvalues stakeholders in addition to its difficulty when it comes to attaining a consensus.
The approach is capable of creating an advantage that is competitive since it connects the stakeholders with the firm. Stakeholders perceive the application which is coherent on the firm’s value, and they relate to them. Through this, a firm has the appropriate data on stakeholders, which is necessary for having them handled properly and developing initiatives that are of importance. It reinforces the firm’s reputation as well as loyalty among consumers and stakeholders, creating enhanced brand recognition and increased trust within the organization (tom Dieck and Jung, 2017).
References
Cooper, S. (2017). Corporate social performance: A stakeholder approach. Taylor & Francis. Retrieved from https://books.google.co.ke/books?hl=en&lr=&id=MkIrDwAAQBAJ&oi=fnd&pg=PP1&dq=stakeholder+approach&ots=BZHAqw_oUP&sig=No1C0YXOhPiMGV4lNhTXhrh-vTk&redir_esc=y#v=onepage&q=stakeholder%20approach&f=false
tom Dieck, M. C., & Jung, T. H. (2017). Value of augmented reality at cultural heritage sites: A stakeholder approach. Journal of Destination Marketing & Management, 6(2), 110-117. Retrieved from https://www.sciencedirect.com/science/article/pii/S2212571X16300774