Organization Into Decision Making Process †Myassignmenthelp.Com

Question: Discuss About The Organization Into Decision Making Process? Answer: Introducation Stakeholder engagement is the process of involving relevant shareholder of any corporate organization into the decision making process. The overall performance of the business and resultant outcome decides the profitability earned annually which is partially received by the shareholders in form of dividend payment. Moreover, the shareholders of the organization are the people collectively providing fund to the company for running its busyness operation or paying for any strategic expansion or planning. They from the credibility of the company as a public company enlisted in the national stock exchange. Therefore, inclusion of them into the business operation and planning is of pivotal importance as any implementation or change in decision can further impact their decision of investment and operation within the organization (Bal et al., 2013). This is one of the major component of Corporate Social Responsibility and requirement of the Global Reporting Initiative. The organization enters into conversations with the stakeholders in order to identify their notion on the current operation or level of satisfaction or any other deviation in the opinion possessed by them (Strand Freeman, 2015). The following are the principles undertaken by the corporate authorities in order to make stakeholder engagement highly efficient and profitable for the business marketing keeping up the social responsibilities they have as corporate entity. Communication: Communication between organization and stakeholders is important to influence the stakeholder thoughts and for that understanding the people and gaining information are the first step to achieve (ORiordan Fairbrass, 2014) Consultation: Early and regular consultation about any project help the shareholder assesses the importance, potential or even possibility of risk associated with it. This clears informational ambiguity. Treating well: Being human, the stakeholder might differ on their opinion of fall short of rationality, predictability or even sense of reasoning. In such cases, the authority requires to be more understanding in order to include their opinion since there are the source of potential risk or opportunity. Good Planning: A well-planned stakeholder engagement operated through integrated and conscientious approach encourages greater stakeholder engagement, which further brings forth higher investment possibility and benefits to the organization. Corporate governance of any company includes the rules and regulation that helps to control and run the business and the role of stakeholders is important as their interests along with other factors of management shapes the corporate governance as a whole. Stakeholder relationship with organization and principles regarding the management of their relation is now most important component of the corporate governance amidst the growing world of business operations (Ayuso et al., 2014). This has important implication for developing communication strategy for communication among all organizations. Inclusion of stakeholders exposes the company to more opportunity and risk factors stemming from randomness of their behavior and opinion, which have influence on the business internally as well as externally for maintaining corporate sustainability. The importance of the stakeholders in the corporate organization lies in the managerial decision making which further reflects into the broader business strategy and planning to bring long term growth and promote expansion in the business. References Ayuso, S., Rodrguez, M. A., Garca-Castro, R., Ario, M. A. (2014). Maximizing stakeholders interests: An empirical analysis of the stakeholder approach to corporate governance.Business society,53(3), 414-439. Bal, M., Bryde, D., Fearon, D., Ochieng, E. (2013). Stakeholder management: Achieving sustainability in the construction sector.Sustainability,5(2), 695-710. ORiordan, L., Fairbrass, J. (2014). Managing CSR stakeholder engagement: A new conceptual framework.Journal of Business Ethics,125(1), 121-145. Strand, R., Freeman, R. E. (2015). Scandinavian cooperative advantage: The theory and practice of stakeholder engagement in Scandinavia.Journal of business ethics,127(1), 65-85.