The concepts of stakeholding and stakeholder value are important for organisations because they help to focus the organisation on its mission, purposes and objectives. Stakeholders can also make a major contribution to the general strategic direction of the organisation. Key stakeholders include:
investors and owners
the general public
Stakeholder value is important because it relates to the general management of the organisation, as described in the discussion of corporate governance. Stakeholder value is related both to the financial perspective of the organisation expressed in terms of return on investment and also to the intangible assets represented by human capital management. The intangible assets are also a key concern of knowledge management.
HR has responsibility for responding to the stakeholder interests of employees in particular but also working with the business to ensure that stakeholder interests are balanced and stakeholder value is created where possible.
However, stakeholder theory has been criticised on a number of grounds, including the complaint that it can deflect management from its primary responsibility for running the organisation.
This topic explains the definition of stakeholder value as well as looking at stakeholder theory and the critique of it.
Key points you need to know on this topic.
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