Figure 3. Stakeholder Analysis (Lee, Shiba, Wood, 1999)
The nature and type of stakeholders’ pressure needs to
be explained in more detailed. The new claim on business
is partly a result of the relative growth of wealth in Western
society (Parston, 1997). Unlike the charitable donations
that many businesses make, accountability for social results
is enduring. The people outside the commercial organizations
begin to exert a new pressure on those inside
them to be more concerned about public issues. It is expected
that business should be made in a way that recognizes
public concerns, if not by producing some sort of
social benefit, at least by ensuring that no contributions to
any type of social harm is made. There is growing demand
in the society for businesses that could be a part of the
community. Thus, coherent responses to the growing pressure
for social outcomes should be developed and implemented.
Socially responsible organizations will no longer be
defined by their financial limits, their ownership, their
products, or their organizational charts but rather by their
roles in society. Parson says (1997), “Tomorrow’s organizations
will produce social results, not just profits”.
Many companies today recognize that achieving excellence
in environmental, safety, health, employment, and
community practices are part of their long-term valuecreating
strategy. At a minimum, achieving good regulatory
and social performance is a long-term objective. Beyond
just complying with local regulations and expectations,
however, companies that excel in critical regulatory
and social processes can enhance their reputations among
customers and investors, and also help to attract and retain
valuable employees who take pride in their companies’
roles in improving environment and the community (Kaplan,
Norton, 2004).
Figure 3. Stakeholder Analysis (Lee, Shiba, Wood, 1999)The nature and type of stakeholders’ pressure needs tobe explained in more detailed. The new claim on businessis partly a result of the relative growth of wealth in Westernsociety (Parston, 1997). Unlike the charitable donationsthat many businesses make, accountability for social resultsis enduring. The people outside the commercial organizationsbegin to exert a new pressure on those insidethem to be more concerned about public issues. It is expectedthat business should be made in a way that recognizespublic concerns, if not by producing some sort ofsocial benefit, at least by ensuring that no contributions toany type of social harm is made. There is growing demandin the society for businesses that could be a part of thecommunity. Thus, coherent responses to the growing pressurefor social outcomes should be developed and implemented.Socially responsible organizations will no longer bedefined by their financial limits, their ownership, theirproducts, or their organizational charts but rather by theirroles in society. Parson says (1997), “Tomorrow’s organizationswill produce social results, not just profits”.Many companies today recognize that achieving excellencein environmental, safety, health, employment, andcommunity practices are part of their long-term valuecreatingstrategy. At a minimum, achieving good regulatoryand social performance is a long-term objective. Beyondjust complying with local regulations and expectations,however, companies that excel in critical regulatoryand social processes can enhance their reputations amongcustomers and investors, and also help to attract and retainvaluable employees who take pride in their companies’roles in improving environment and the community (Kaplan,Norton, 2004).
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