Essay Sample on Improving Relationships in a Business

Introduction

Stakeholders refer to the employees who are employed in a corporation, bondholders, clients of the organization, and the suppliers and vendors who work with the corporation. A stakeholder usually has an interest in the performance of the corporation. Additionally, shareholders of the corporation can always be stakeholders, but stakeholders cannot always be shareholders. Stakeholders are related to a corporation in various ways. For instance, it is common to see many corporations having employees as their stakeholders. Their relationships with the corporation can be seen as intangible assets of the business (Steurer, Langer, Konrad & Martinuzzi, 2005). Many corporations value their employees regarding their dedication to work for the organization and as well understand that managing the relationships between the stakeholder and the corporation is important in attaining many benefits of the organization.

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Since these relationships are an asset to the business, effective management of the same would see an increasing range of opportunities with decreasing risks within the corporation. Employees play a major role in the production, and they should always be appreciated by showing them their fitness and the fitness of their roles in the larger picture (Bowles, 2014). Corporations can invest in their employees by encouraging and rewarding their growth, engagement, and satisfaction. Having a strong relationship as well as fair treatment with the employees as core stakeholders is important in the long-term benefit of the corporation. Therefore, the stakeholder engagement can be improved by effective management of the relationships.

Good identification of rules and responsibilities can lead to an improved relationship between stakeholders and the corporation. For every business, stakeholders are the investors in the corporation as their actions are the determinants of the outcome of the business decisions. Many employees in both large and small corporations usually have a stake in the company's success and play the largest role in the incentives for the growth of the corporation's products. Even though the roles of employees differ between various corporations, they participate in the success of their respective workplaces through depending on the rules and responsibilities associated with them. Employees have a clout to hold stakes in the corporations. Furthermore, the value of the company can be exhibited with employee engagement.

Including employees in the decision-making process can lead to an improved relationship between them and the corporation (Lynch-Fannon, 2003). Employees play a major role in the decision-making process within an organization. Employees, when included in the decision-making team, can be innovative and produce a wide range of opinions for the development of the organization (Kirkpatrick, 2009). The decisions made by various stakeholders, including the board of directors contribute to the development of the organization. Just like any other stakeholders, employees will determine the increase or decrease in stakes of the organization about the corporation's performance. Employees play an important role in the corporation in that they can pore over financial reports and force or suggest to the management to change the strategies whenever necessary for better performance. They may make decisions or opinions on investments and divestitures and provide feedback on their effect on the corporation's performance. Employee feedback is also being incorporated into the business decision process to come up with the most effective solution to a presented challenge.

Having employees as investors can lead to stronger relationships between them and the corporation. Some employees are also low-profile investors hence; monitor the activities of the organization as well as the intended initiatives (Bowles, 2014). They may be requested to vote and vouch for the business decisions to evaluate the viability of the corporation's goals. Through these actions, the corporation can be kept on its toes, mainly focusing on the most profitable products, which sustain the organization's income. Corporations should be considering paying attention to the needs of the employees to let it remain in a good position in the competitive market.

Having employees participate in marketing can lead to enhanced relationships between them and the corporation. Employees are non-market stakeholders who contribute to the actions of the corporation even though do not engage directly in economic exchange with the organization. Employees involve themselves in interactive forms of stakeholder engagement where the corporations actively engage with them in a continuous relationship grounded on respect, trust, and openness (Roomkin, 1989). Through their participation in various activities, employees assist corporations to learn about their societal expectations. They also generate creative solutions to challenges of the organization. Their engagements with the corporations assist with stakeholder support for the implementation of solutions to problems within the organizations. The involvement of employees, therefore, in business management, is a contributing factor to the success of the corporation.

Engagement of employees with an organization can also assist in the improvement of corporate reputation for the taking of constructive actions hence stronger relationships with the firm. Their engagements with the corporations are important in the neutralization of critics of ideas and suggestions brought forward by other stakeholders such as clients. Additionally, the societies, as well as business are interdependent parties. Involvement of stakeholders including employees in the mix would see the success of corporations. Many corporations are now showing value for employees as people as well as promote better practices in hiring and engagement of employees with other staff. Therefore, improving the relationship between stakeholders and the corporation can be effective in enhancing the corporation's productivity.

References

Bowles, D. (2014). Employee morale: Driving performance in challenging times. Place of publication not identified: Palgrave Macmillan.

Kirkpatrick, D. L. (2009). Improving employee performance through appraisal and coaching. Place of publication not identified: Prentice-Hall Of India Pv.

Lynch-Fannon, I. (2003). Working within two kinds of capitalism: Corporate governance and employee stakeholding: US and EC perspectives. Oxford: Hart Pub.

Roomkin, M. J. (1989). Managers as employees: An international comparison of the changing character of managerial employment. New York: Oxford University Press.

Steurer, R., Langer, M. E., Konrad, A., & Martinuzzi, A. (2005). Corporations, Stakeholders and Sustainable Development I: A Theoretical Exploration of Business-Society Relations. Journal of Business Ethics, 61(1), 263-281. doi:10.1007/s10551-005-7054-0