All manage the firm directly. But both of

All
parties who involved in the current issues are stakeholder. Previous researches
have declared it clearly. Stakeholder is some group or individual that can
influence one and another through  attainment of the organization objectives such
as actions, policies, decisions, and target (Xu & Li, 2013). Clarkson Centre for Business Ethics divides stakeholder
as primary one and secondary one. Primary stakeholders are the parties that
give a guarantee of firm through solving problem about economic stake and
managing risk. The creditors and the shareholders that have contractual
responsibilities, the government and the communities which have non-contractual
responsibilities in the firms are the component of primary stakeholder. On the
other hand, secondary stakeholders do not manage the firm directly. But both of
stakeholders type influence one and another through activities (Magness, 2008).  Moreover, Miles (2012) reported some stakeholders definitions based on its authors,
such as Mitchell (1997) classifies stakeholder by attribute  possession in the firm namely; the power to
impress the organization, the ability to justify relationship with the organization,
and the ability to  insist claim on the
organization.  

 

The Manager’s
role shapes a business through stakeholder relationship by producing and
distributing value in dissimilar manner for many different stakeholders (Schlierer et al., 2012). In other words, stakeholders have the role important to
make the firm to be successful. Changing stakeholder relationship can cause
troubles because of variety of expectation, competition and antagonistic of
stakeholder (Xu & Li, 2013). Initially,” stakeholder theory is a theory of
organizational management and ethics” Philips et al. 2003 as cited in Beringer, Jonas, &
Gemunden, 2012). The stakeholder theory assumes that a firm, represented by its
management, has relationship with many groups of individuals in the firms and
in its surroundings. These groups play a critical role in the success of the
firm and have intrinsic value for all of interest stakeholder (Bringer et al,
2012).

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Individual
or group who can affect or affected by the goal of firms or organizations is
stakeholder. To balance the conflicting needs and demands as well as to evolve the
manner to handle the different demands of internal and external stakeholders is
used stakeholder management (Fassin, 2012). Stakeholder behaviour must be understood to ensure that
stakeholder management is effective. Actual behaviour of stakeholders is declared
through connected interactions by researchers. Such stakeholders have capability
to affect the others but organizations will be affected indirectly, stakeholder
behaviour can be explained through the position of stakeholder in a network,
and stakeholder ability to affect depends on the interactions among the stakeholders
and conditional relation (Bringer et al., 2012).

 

On the
other hand, in legitimacy theory, social contract is considered as expectation
of society about how organization followed the conduct in their operation.
Organization is expected to achieve all of conduct dealt with the expectation
of the society. Stakeholder management is the core competence which become an
integral part of the culture of the organization (Minoja, 2012). Then stakeholder management also can result in a valuable
creation by the genuine ethical consideration of all stakeholders, or via a
public relations exercise: arguably in either case stakeholder management is a
positive attainment.

 

Schwartz (2006) informs that God is a managerial stakeholder. He supported
criteria of Mitchell (1997) namely power, legitimacy and urgency. Power is held
through powerful, practicable or normative arguments based on physical
resources or intangible (Fassin, 2012). Physical resources mean everything can
we see, feel or find, such as Allah created the sky and earth and change the
daylight and night (QS. 3-190), all of life source of water (QS. 21-30), the
moon and sun circulates through the line of orbit (QS. 36-40), and the mountain
are continuously run like the clouds (QS. 27-88). On the other hand, intangible
resources mean symbolic resources, like Allah have the great merit (QS. 5-105),
the Possessor of judgment day (QS. 1-4), executor of everything by His own
account (QS. 11-107) and the Owner of punishment (QS. 3-4)

 

Legitimacy
is a common assumption that the activity of an entity is desirable within some
socially constructed system of norms, values, beliefs, definitions (Schwartz,
2006). So that the believer of the God would assume that all activities are
arranged by the God like a mother who must breastfeed her baby for two years
(QS. 2-233), giving the basic necessities based on a person’s capabilities (QS.65-7),
everyone will be responsible his sins (QS.34-25; 39-7), the merit for the
kindness is ten times but punishment for misdeed is balance with the falsity
(QS. 6-160). Finally, it is very urgent, “The degree to which stakeholder
claims call for immediate attention”. The believers convince that God always
watches and postpone the consequences for incompatible behaviour (Schwartz,
2006). The call such as read al-quran (QS. 2-121), obey Allah, Prophet and
leader (QS. 4-59), do fasting (shaum) (QS. 2-183), go to Makkah for Hajj and
umr (QS. 3-97), and implement shalah and zakat (QS. 2-43) are commanded by God
and need immediate attention.

 

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