Question

What does it mean to “manage for stakeholders”? What are some of the advantages that accrue to a firm that uses this approach?

Answer 1

We can say that manage for stakeholder essentially creates the necessary understanding of the needs of the stakeholders and therefore effectively manage their interaction, engagement and make it so that their needs are met. We can say that the need to understand the needs and the requirements of the stakeholders in order to modify the functionality of their processes to make build better relationships with them. There are a number of stakeholders for a company which can be divided in the basis of the nature of their interaction as well as importance. Stakeholder management, therefore, allows the company better adherence to the needs of their primary stakeholders and therefore when we say a for stakeholders we essentially mean that the functions of management are conducted with the aspect of the needs of the stakeholders in mind.

For a company that makes use of this methodology and thinking, the ability to be able to conduct the functional aspect of the product as well as the needs of the organization itself becomes easier to accomplish. When the company is able to make the use of their processes better, in line with the need of the stakeholders, they can achieve their required goals easily, have less resistance and the most possible use of their factors such as their name, position, capital value etc.