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Since stakeholders are "the individuals, groups, or other organizations that are affected by and also affect the firm's decisions and actions," the manager of a company or organization ultimately works for the stakeholders. If the stakeholders feel the manager(s) of a company or business is not leading the organization in a desirable manner (which ultimately means in a way that will allow bring a profit to the company and stakeholders), the manager could be released from employment.
Managers are in positions of responsibility within their respective employments; the continuation of their positions depends upon their demonstration of satisfactory management of the company or business. Stakeholders provide the financial resources and/or ethical direction for a company. Managers interested in maintaining their positions need to be respectful of and responsive to the positions and directions of the stakeholders.
Communications and fair treatment between managers and stakeholders are important elements in business. Stakeholders should be treated fairly for the following (not exclusive) reasons:
-Stakeholders who feel they are being treated unfairly will simply network, partner with and combine efforts and connections with other companies/businesses
-Business culture, ethics, business values etc., can be promoted through stakeholders via networking. As such, managers/leaders should ensure business policies and practices are aligned with principled ethics, by treating stakeholders fairly.
-Often times, great value and innovation come from the varied combination of stakeholders.
-Treating stakeholders fairly will promote a ‘sense and culture of allowance for equal opportunities”, and diversity which especially in this world of changing demographics creates value and promote business.
-Finally, it is imperative and critical that managers act fairly and with integrity towards stakeholders as there are legal standards, compliance, other applicable laws, regulations and administrative practices in different businesses and in different cultures/countries. Managers must be cognizant of such laws to minimize claims of discrimination, and other law-suits etc.
Hope this helps!
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