Stakeholder Theory Ethical Management - Free Samples to Students

Question: Discuss about the Stakeholder Theory Ethical Management. Answer: Introduction Stakeholders form an essential part of the organization. Their interest has to be taken care of. For this, tools such as stakeholder`s analysis are used. The report throws light on the stakeholder analysis of Royal Ascot with special reference to the Power/ Interest Matrix. A stakeholder can be defined as an individual, organization, social groups or the society, which has a stake in the business or the efficiency of a business. Stakeholders can be from the internal as well as the external environment of the business (Ferretti 2016). A stake can be described as vital interest in the business or the activities. It can vary from ownership and property interests to legal interests and obligations including moral rights Stakeholder analysis in the business domain can be defined as a process of understanding and identifying the impact of a decision on the relevant party. This information comes useful in assessing the interest of the stakeholders and how they should be addressed in the planning, policies, programs and other actions relevant to a business (Bottero Mondini and Datola 2017). Stakeholder analysis forms a primary component of stakeholder management. In a stakeholder analysis, the procedure comprises of balancing, weighing and measuring the various demands placed on the firm by the particular stakeholders having a stake in the particular issue or a problem. In this analysis, the aim is to keep the interests of stakeholders in vision and compensate those who have been affected. The stakeholder`s attitudes can be assessed regularly to track their changes using a stakeholder`s analysis (Mindtools.com 2017). The benefits of this include-Identification of risks and identification of primary stak eholders who affect the business adversely. Stake holders of Royal Ascot Race goers- These are the people who attend the race meetings regularly. Employees- These include the managing staffs who manage the various events that take place at Royal Ascot. Royal Ascot conducts various events like weddings and conferences. Jockey- They is the ones who handle the horses. Their interest is of extreme importance. Caterer- Royal Ascot has appointed a single caterer since 1998 named - Sodexo Prestige. During the races there are 39 kitchens operating for delicacy. Outside vendors or suppliers- There are various suppliers like bars and food outlets around the racecourse who are dependent on the welfare of the events of Royal Ascot (Ascot.co.uk. 2017). Temporary hospitality staff- During the races various staff members are hired on temporary basis for cleaning, catering and maintenance purposes. Sponsors- These are the primary stakeholders who sponsor the event Government entity- Royal Ascot has to abide by certain rules and regulations for ease of functioning Visitors- Visitors include first time visitors, wedding party and other event members The royal family- The royal family opens the race in June every year. They are the primary reason behind the huge crowd. Interest of the Stakeholders of Royal Ascot Race goers-There satisfaction depends on the success and management of the races. Employees- The employees have an internal stake in the success of the company. Their livelihood depends on these events. Jockey-If the jockeys are not pleased, they can spoil the show. Caterer- The caterers would like the maximum crowd pull to increase their sales. Outside vendors or suppliers- The outside vendors, set up food counters and stalls for the people who visit the races. The suppliers tend to provide various equipments required, hence they have a considerable stale in the success of the event Temporary hospitality staff- The temporary staff is present during the peak seasons. They tend to perform tasks when the crowd pull is the highest. There employment depends on the success of the races (Ascot.co.uk. 2017). Sponsors-the sponsors would like to have maximum return for the investment. Government entity- The government aims at the welfare of the people. It requires the law and order to be maintained. Visitors- They is the customers and their needs must be met primarily. The royal family- The royal family is the primary stakeholder. Their name is associated with the brand. Hence, they would want it to be conducted ethically and efficiently. Power/ Interest Matrix When managing a project, the interest of various stakeholders needs to be considered. However, not all stakeholders are equal (Horton and Pilkington 2014). Some stakeholders are more important than others are and need to be dealt with accordingly. In order to understand which stakeholder needs maximum attention, a power/ interest matrix is used. A power/ interest Matrix, also known as Power/ Interest grid, are a management tool, which helps the managers to categorize the stakeholders in order of increasing power and interest in a project. This tool helps the firm to focus on the key stakeholders who can turn a venture into a success or a failure. In simple terms, the matrix helps in stakeholder prioritization (Andriof et al. 2017) The process involves documenting the interest and motivations of the stakeholders, identifying the conflict among the different stakeholders. It also involves identifying the relationship between the stakeholders and determining the level of involvement required from each stakeholder for a particular project. Use of this matrix, the firm can determine the stakeholders who need close management and those who need minimum management. This tool thus, helps the firm in channeling their time and energy on the stakeholders who have the highest interest and most power in the venture`s success. The Power/ Interest Matrix is the second step of the Stakeholder Matrix, where each stakeholder`s contribution and importance is identified and plotted against the matrix ranging from the power to interest (Weiss 2014). The ones with high power and high interest need to be managed closely and the ones with low power and low interest need to be managed with minimum effort. Power/ Matrix Analysis of the stakeholders of Royal Ascot The power/ interest matrix has been done in the excel sheet attached. The kind of influence of each stakeholder has been explained below: Race-goers- They belong to the high power, low interest quadrant. These are cautious stakeholders. They have high power because they are the main customers of the races. Their presence is important to the event. They need to be kept satisfied. Employees- The employees belong to the high power, high interest quadrant. They are the main backbone of the organization and their participation is crucial for the welfare of the events. They need to be managed closely Caterers- They belongs to the high interest, low power quadrant. They have high interest in the welfare of the organization; however, the power is not as high. This group needs to be well informed about the actions and operations. Vendors and suppliers- They belong to the same matrix as the caterers. This group needs to be well informed and their interest stake is high. Temporary staff- They belong to the lowest quadrant as they have low interest and low power. They can be easily replaced and therefore their stake needs to be monitored. Sponsors- They belongs to the most valuable quadrant with high power as well as high interest. They are the source of funds for the events and need to be managed closely for the success of the events as well as the organization. Government entity- They have been placed in the high power but low interest quadrant because their interest in the welfare o the organization is not very high. However, they have adequate power, which is essential (Harrison, Freeman and de Abreu 2015). Visitors- These are the visitors who are not that regular in attending the events, their power is high, but their interest in the events is not adequate. Royal Family- The royal family belongs to the respective quadrant because of their high power in the society, however, their interest in the event is not enough. Jockey- The jockey`s are the key drivers of the event. They are often ignored but must be managed closely. Conclusion Therefore, from the discussion it can be concluded that stakeholder analysis is an important study, which should be undertaken regularly to monitor and understand the needs of the stakeholders. Royal Ascot has various stakeholders, who need to be managed accordingly by making use of the Power/Interest Matrix given. Reference List Andriof, J., Waddock, S., Husted, B. and Rahman, S.S., 2017.Unfolding stakeholder thinking: theory, responsibility and engagement. Routledge Ascot.co.uk. ,2017.Ascot Racecourse | Royal Ascot Horse Racing | Home. [online] Available at: https://www.ascot.co.uk/ [Accessed 17 Nov. 2017]. Bottero, M., Mondini, G. and Datola, G., 2017. Decision-making tools for urban regeneration processes: from Stakeholders Analysis to Stated Preference Methods.Tema. Journal of Land Use, Mobility and Environment,10(2), pp.193-212. Ferretti, V., 2016. From stakeholders analysis to cognitive mapping and Multi-Attribute Value Theory: An integrated approach for policy support.European Journal of Operational Research,253(2), pp.524-541. Harrison, J.S., Freeman, R.E. and de Abreu, M.C.S., 2015. Stakeholder theory as an ethical approach to effective management: Applying the theory to multiple contexts.Revista Brasileira de Gesto de Negcios,17(55), p.858. Horton, L. and Pilkington, A., 2014. Rolling Back from the Power/interest Matrix: A New Approach for Role Based Stakeholder Engagement in Projects. Mindtools.com ,2017.Stakeholder Analysis: Winning Support for Your Projects. [online] Mindtools.com. Available at: https://www.mindtools.com/pages/article/newPPM_07.htm [Accessed 17 Nov. 2017]. Weiss, J.W., 2014.Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.