Ontemporary Issues in Management

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This essay Contemporary Issues in Management descusses new business management approaches, that involve the creation of new channels for shareholders, employees, and investors to question and contribute to CSR development. Stakeholders exist in every organisation whether it is profit or nonprofit. Stakeholders can be summarised as the people who form the internal and external environment of any organisation. Stakeholders are, in essence, the organisation. Consequently, it is important for organisations to understand the role played by stakeholders so that they can enhance it as well as improve their relations with them. The objective of this paper is to provide a critical evaluation of the role of stakeholders within CSR. Freeman’s stakeholder theory highlights and models the stakeholders of an organisation, and both defines and suggests methods by which senior management can duly recognise and address the interests of these entities. In summary, Freeman tries to address the “who or what matters” concept. In the traditional perspective of the organisation – the shareholder perspective – the shareholders are the owners of the organisation and the company has an irrevocable fiduciary responsibility to prioritise their needs and enhance value for them. In previous input/output organisational models the company was expected to transform the contributions of employees, suppliers and investors into salable products that consumers purchase, hence providing some capital benefit to the organisation.