In the 21st century, only the call for short-term success prevails. There is necessity of flexible reactions to changes of the economic environment on the part of companies that are standing in the bright light of public under pressure to perform. This is termed public exposure or business exposure. Depending on the point of view of stakeholders to a company, the understanding of corporate success varies strongly from maximal EPS, the ability to guarantee lifetime jobs or maximal tax proceeds – just to name some main objectives of different stakeholders.
Since there are numerous stakeholders claiming interest towards a company, there is great tension between Shareholder Value and the Stakeholder Approach to strategic management, sometimes called the “Stakeholder Value” concept, and thus there are different leadership views. Further, the question which stakeholder(s) a company should focus on has not been answered consistently. However, there is empiric evidence of correlation between social engagement, or fulfillment of Corporate Social Responsibility and great financial Performance. Despite this empiric correlation, the equation correlation causality applies. The open questions are: to what extent do internal stakeholders influence the success of a corporate strategy? How can we assess whether actions taken by a company to fulfill the stakeholders´ interests were successful or not?
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Theoretical Framework
- 3. Model and Hypothesis
- 4. Analysis
- 5. Summary and Implications
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper examines the influence of internal stakeholders on the success or failure of corporate strategies. It explores the tension between shareholder value and stakeholder approaches to strategic management, questioning which stakeholders a company should prioritize. The paper also investigates methods for assessing the success of actions taken to meet stakeholder interests.
- The influence of internal stakeholders (shareholders, management, employees) on corporate strategy.
- The tension between shareholder value and stakeholder approaches to strategic management.
- Methods for assessing the success or failure of corporate strategies in relation to stakeholder interests.
- The role of corporate social responsibility in achieving stakeholder satisfaction and financial success.
- The impact of stakeholder power and influence on corporate decision-making.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter sets the stage by highlighting the prevailing emphasis on short-term success in the 21st-century business environment. It emphasizes the pressure companies face to perform well publicly, leading to diverse interpretations of corporate success depending on the perspective of different stakeholders (e.g., maximizing earnings per share versus guaranteeing lifetime employment). The chapter introduces the central tension between the shareholder value and stakeholder approaches to strategic management and poses key questions about the extent of internal stakeholder influence on corporate strategy success and the assessment of actions taken to fulfill stakeholder interests. The introduction effectively frames the core problem the paper aims to address.
2. Theoretical Framework: This chapter delves into the theoretical underpinnings of stakeholder theory, primarily drawing on the work of Freeman/Reed (1983). It presents two definitions of "stakeholders": a broader definition encompassing all groups influencing or affected by an organization and a narrower definition focusing on groups essential for the organization's continued existence. The chapter then focuses on internal stakeholders (shareholders, management, and employees), outlining their contributions to the company and their respective claimed rewards. This framework establishes a foundation for understanding the diverse perspectives and interests within a firm and sets the context for the subsequent analysis.
3. Model and Hypothesis: Chapter 3 introduces a model and hypothesis related to the influence of internal stakeholders on corporate strategy. It notes a shift in the late 20th century towards recognizing the claims of internal stakeholders and their growing influence on companies. The chapter discusses the stakeholder management approach and its importance in understanding and managing stakeholder power. It highlights the significance of corporate social responsibility and its potential correlation with reduced financial risks, based on studies like McGuire et al. (1988). This chapter lays the groundwork for the empirical analysis to follow by proposing a framework for understanding and measuring stakeholder influence.
Schlüsselwörter (Keywords)
Internal stakeholders, corporate strategy, shareholder value, stakeholder approach, corporate social responsibility, stakeholder management, strategic management, financial performance, influence, power.
Frequently Asked Questions: Comprehensive Language Preview
What is the main topic of this seminar paper?
This seminar paper examines the influence of internal stakeholders (shareholders, management, and employees) on the success or failure of corporate strategies. It explores the tension between prioritizing shareholder value versus a broader stakeholder approach to strategic management, and investigates methods for assessing the success of actions taken to meet stakeholder interests.
What are the key themes explored in the paper?
Key themes include: the influence of internal stakeholders on corporate strategy; the tension between shareholder value and stakeholder approaches; methods for assessing the success of strategies concerning stakeholder interests; the role of corporate social responsibility; and the impact of stakeholder power on corporate decision-making.
What theoretical framework is used?
The paper draws primarily on stakeholder theory, particularly the work of Freeman/Reed (1983), using both broad and narrow definitions of stakeholders to analyze internal stakeholder influence.
What model and hypothesis are presented?
Chapter 3 introduces a model and hypothesis concerning the influence of internal stakeholders on corporate strategy. It discusses the stakeholder management approach and the significance of corporate social responsibility, drawing on studies like McGuire et al. (1988) to suggest a potential correlation between CSR and reduced financial risks.
What are the chapter summaries?
The Introduction sets the context by highlighting the pressure on companies for short-term success and the resulting diverse interpretations of corporate success. The Theoretical Framework delves into stakeholder theory and the roles of internal stakeholders. The Model and Hypothesis chapter introduces a framework for understanding and measuring stakeholder influence. The Analysis chapter (not fully detailed in the preview) would presumably analyze data related to the model and hypothesis. The Summary and Implications chapter (also not fully detailed) would present conclusions and their wider significance.
What keywords are associated with this paper?
Keywords include: Internal stakeholders, corporate strategy, shareholder value, stakeholder approach, corporate social responsibility, stakeholder management, strategic management, financial performance, influence, power.
What is the overall objective of the paper?
The paper aims to understand how internal stakeholders influence corporate strategy success and how to effectively assess the results of actions taken to satisfy stakeholder interests, considering the tension between shareholder value and broader stakeholder approaches.
What is the structure of the paper?
The paper is structured with an introduction, a theoretical framework chapter, a chapter presenting a model and hypothesis, an analysis chapter, and a concluding chapter summarizing findings and implications.
- Arbeit zitieren
- Philipp Ottenstein (Autor:in), 2015, The Relevance of Internal Stakeholders to the Success or Failure of Corporate Strategies. Which Option Can a Firm Pursue?, München, GRIN Verlag, https://www.grin.com/document/351445
