The Stakeholder Theory

CORPORATE SOCIAL RESPONSIBILITY
Student’s Name
Code + Course Name
Professor’s Name
University Name
City, State
Date
Task 1
According to Edward Freeman, a stakeholder is "any group or individual who can affect or is affected by the achievement of the organization's objectives"(Freeman 2010, pg.46). The stakeholder theory explains and predicts how various organizations function concerning the influencers and relationships in their environment (Rowley 1997). The stakeholders' theory is characterized by ethics based or normative, descriptive value, and instrumental perspectives. The stakeholder theory's instrumental approach holds the idea that stakeholders should result in the business goals achievement and the various advantages acquired between the stakeholder and the organization built based on cooperation and trust. (Jones, T.M. and Wicks 1999, pg.208). The normative approach assumes that all stakeholders have inherent value, and it relies on the concept of what is morally acceptable and just to the stakeholders. The descriptive policy to stakeholder theory describes various corporations and their system of working. It analyses The Corporation as having intrinsic values. Stakeholder theory tends to shed light on various organizational phenomena such as value maximization and communal responsibility. There are two categories of stakeholders: internal, part of the academic community, and external stakeholders, who are considered outsiders. External stakeholders, such as the government, invest in higher education to acquire changes that could benefit their interests. Educational institutions have the task of forging a productive partnership by carefully selecting stakeholders. External stakeholders are essential to higher educational institutions since their contribution to the institution aids in it being more responsive to the outside environment. Educational institutions' responsiveness to the environment legitimizes the internal affairs of the institution. According to Mitchell, Stakeholder salience involves the degree to which various managers prioritize competing stakeholder's claims (Mitchell et al. 1997, pg.868). The diverse network of relationships in which some stakeholder groups in the educational institutions are situated contributes to the level of responsiveness attributed to them by higher educational institutions.
The guiding principle of the international business School is to impact society through research, teaching, and engagement in the community. The main stakeholders at the International Business School Suzhou ( IBSS) include the students and their various families. Students at International Business School Suzhou are perceived as definitive stakeholders since they contribute to the internal quality assurance and influence in the IBSS. Students are the direct beneficiaries of education in the IBSS. International students at the IBSS contribute to balancing the teaching strategies for the institution's various programs. Students also aid in the improvement of the problem based learning by providing feedback. Students at IBSS constructively criticize multiple projects at the institution and, therefore, contribute to curriculum design. As stakeholders, the students are actively i...