The process of establishing a stakeholder orientation impacts business ethics and social responsibility. Describe stakeholder orientation.
Stakeholder orientation is a state of mind on the part of a company. It is part of the company’s corporate culture. It exists when the company is concerned about the impact of its actions on all of its stakeholders, not just those who own the company.
To understand this, let us first look at how “stakeholder” can be defined. We can say that any person or group of people is a stake holder if it fits two main criteria. First, it must be someone who is or can be affected by the actions of a firm. Second, it must be able to grant or withdraw some resources that are important to the firm. What this means is that any firm has many stakeholders. These include the firm’s owners, its employees, its customers, its suppliers, and even, potentially, the people of the community in which the firm operates.
The stakeholder orientation tries to value all of these stakeholders. It truly commits to taking the needs of all stakeholders into account when it makes decisions about what to do. Thus, it is an attitude that is more focused on doing the right thing by everyone the firm affects, not just on making money.