Stakeholders in Non-Profit
Corporations
Jones
ORG–807
Grand Canyon University
May 1, 2015
Stakeholders
in Non-Profit Corporations
In
the non-profit business firm, the interest, opinions and concerns of the
stakeholders are managed in the form of actions. When a non-profit organization
starts a project, it organizes meetings with the internal stakeholders and
conduct survey with the external stakeholders. These activities are important
for the firm to analyze the different interest of the stakeholders in the
particular issue. Further, after gathering their responses, the team analyzes
the relevancy of the interest and opinion with the specific needs and
requirements of the goals of the company and concerns of the stakeholder
(Lawrence, & Weber, 2013, p. 314).
After
this evaluation, the non-profit organization stresses on the concern of the
stakeholders and community on the issues. For assuring them that their views
are considered in the firm, the company implements their suggestions. For instance,
in an event of providing education to poor and needy people, the stakeholders
of the firms make sure that the organization will organza a full time study for
the children (Boutelle, 2004). The nonprofit firm always focuses on the
concerns of the stakeholders to provide them satisfaction by implementing their
suggestion in real terms. High influence of stakeholders and their high
interest is always considered in the nonprofit organization.
In
the for-profit business firm, the business organization makes high efforts to
consider the stakeholder’s interest, opinion and concern to manage a profitable
situation. First of all, the business organizations conduct market research to
analyze the needs and requirements of the external stakeholders. Further, the
companies follow all the labor rules and regulation to make sure that all the
internal stakeholders are considered for their welfare, during the decision
making process, the company involves both the internal and external
stakeholders to ensure them that their perceptions are valuable to the firm
(Lawrence, & Weber, 2013, p. 314).
In
addition to this, to make sure that the firm is highly concerned about the
stakeholder’s opinion and welfare, the company makes corporate social
responsibility efforts and defined all the guidelines and procedures which are
taken by the firm. These corporate social responsibility and community welfare
efforts of the business organization increases the involvement of stakeholders
in the firm and develop a feeling among them that they are a significant part
of the firm, The company always focuses on high interest and high influences of
stakeholders in the business organizations. A two way communication path is
also followed by the firm to improve the stakeholders’ involvement (Boutelle,
2004).
Differences in the Approach of
For-Profit and Nonprofit Corporations
Yes,
the approaches used by for profit corporations and the nonprofit corporations
to manage the stakeholder’s interest and concerns are quite different because
of differences in the basic goals and objectives of the firm. The for profit
organization starts CSR programs because their aim is to retain the employees
and earn profit by being a good corporate citizen, whereas the non-profit
organizations eventually works for the social development, so they talk
directly to the stakeholders to manage their concerns (Boatright, 2006).
In
addition to this, for profit firm focuses on those concerns of the stakeholder
which brings profit from them such as green marketing, waste management and
less emission of hazardous gases from factories. On the other hand, the
non-profit corporations conduct survey with the stakeholders to resolve the
hidden social issues like domestic violence, child labor, employees’ rights and
protection, environmental protection recycling, which are not only beneficial
for the firm but also for the society
The
approach of for profit firm is to analyze the market environment to understand
the stakeholder’s interest, whereas the approach of nonprofit firm is to
conduct the survey and gather feedback of stakeholder to make sure that the
firms are managing their needs and focusing of development of the society
(Lawrence, Weber & 2013, p. 374).
Stakeholder’s
Conflicts
Interest
and opinion of the stakeholders for both the for-profit and nonprofit business
organizations are critical for the long term success of the business
organizations (Boatright, 2006). In all the business firm, for profit and
nonprofit, the stakeholder conflicts and interests can be focused by following
the two questions:
1. How the approach of developing an open
communication path for the stakeholders is critical to understand their
interests and corners?
2. What types of conflict management
programs are used by the business organizations to resolve their conflicts with
the stakeholders and understand their interest?
These
research questions are useful to evaluate the management techniques used by the
organizations to analyze the stakeholder’s interest and opinion. These are
related to the qualitative research methods and the company can use these
questions in the focus group analysis and take feedback of the employees and
other stakeholders to know about the process of the firm. A detailed response
of the stakeholders will help the companies to know that at what extent it is
able to resolve the conflicts of the stakeholder. Consideration of stakeholder’s
opinion is also taken in this feedback and stakeholder will feel more
comfortable in the firm. Their interest and influences will increase with the
help of this focus group analysis (Lawrence, & Weber,
2013, p. 374).
References
Boutelle, J. (2004).
Understanding organizational stakeholders for design success.
http://boxesandarrows.com/understanding-organizational-stakeholders-for-design-success/
Lawrence, A.T., &
Weber, J. (2013). Business and Society: Stakeholders, Ethics, Public Policy
(14th edition). McGraw-Hill Education.
