MajorStakeholder Management and Ethics Challenges
Itis a dream for every company to grow in terms product quality,management and profitability. Most companies also aspire to extendtheir horizons and go global in an endeavor to expand their brandinfluence. However, the companies face various challenges as theygrow from local to global. This paper delves into the stakeholdermanagement and ethical challenges companies face as they go global.It also evaluates a stakeholder model that best addresses thechallenges.
Oneof the challenges is related to equity (Carroll,2004).As companies start operations in foreign nations, the issue ofexecutive salaries is prominent as there are economic dynamics thathave factored. The salary scales are different from those of theirlocal firms and require adjustments for harmonization(Rolloff, 2008).Product pricing is also an important challenge that faces thestakeholder management as they endeavor to penetrate the market andpromote their brand.
Theissue of rights is also another problem that confronts stakeholdermanagement in foreign markets(Post, Preston and Sachs, 2002).The problem of employees` health is prominent as they requirescreening to determine their health status. The screening could,however, conflict with their cultures and beliefs. Affirmative actionissue could also take a new dimension in global markets. The firmsmust to cope with new aspects of stakeholder management. Sexualharassment issues could also arise(Rolloff, 2008).For example, there are countries where the rights of women are notupheld and hence subjected to intimidation and harassment in theworkplaces. The issue is prominent in the Middle Eastern countries.The problem of equality in the provision of employment opportunitiescould also hamper the operations of companies in the management ofstakeholders.
Thestakeholder corporation model provides the best opportunity toaddress the challenges. The model involves effective communicationand engagement to determine the concerns of the stakeholders. It isabout comprehensive consultation so that major decisions are asinclusive as possible. Eventually the decisions adopted arereflective of all views and hence accommodative.
Carroll,Archie B.(2004). ManagingEthically With Global Stakeholders: A Present And Future ChallengeAcademyManage Perspective18:2 114-120 Doi: 10.5465/AME..13836269
PostJames E., Preston Lee E. & Sachs Sybille. (2002). Managingthe Extended Enterprise: The New StakeholderViewCalifornia Management Review,Vol. 45 No. 1, (pp. 6-28) DOI: 10.2307/41166151
RolloffJulia. (2008).Learningfrom multi-stakeholder networks: issue-focussed stakeholdermanagementjournal of business ethics, 82:223-250do1 10.1007/s10551-007-9573-3.print