Grand Canyon University: ORG-807
June 25, 2013
This paper will discuss how non-profit and for-profit organizations manage the interests, opinions, and concerns of their stakeholders. Additionally, this paper will address the management differences that exist between for-profit and non-profit organizations. A set of research questions will be presented to research the effectiveness of the management techniques employed between the two types of organizations.
Managing stakeholder interests in non-profit organizations Non-profit organizations manage stakeholder interests, concerns and opinions by listening and determining stakeholder salience and according to …show more content…
In both organizational types, communication and trust have been the key components to successfully dealing with stakeholders. The formula, which allows organizations to manage its stakeholders in either a for-profit or non-profit organization, consists of three key components. First, management in either arena should determine stakeholder salience with regard to power, legitimacy, and urgency by developing a stakeholder map (Lawrence & Weber, 2011). Second, management should conduct a thorough stakeholder analysis, prioritizing key stakeholders, assessing their needs, and collecting ideas from them. Third, the management of stakeholder component should include communicating, contracting and building partnerships with the stakeholders. An essential piece to unlocking stakeholder benefits to the organization is trust. (Cornell & Shapiro, 1987) assert that a firm with a trustworthy reputation can also avoid value-destroying outcomes such as legal suits, adverse regulation, consumer boycotts, strikes, walkouts, and bad press. (Graves & Waddock, 1994) go on to state, avoiding negative stakeholder responses can reduce expenses as well as the risks a business faces.
Research questions This author would like to present the following research questions for