Means for Satisfaction of Stakeholders’ Needs and Interests

Abstract

The paper focuses on satisfaction of stakeholder through carrying out comprehensive stakeholder analysis including identification and prioritization of stakeholders, understanding and harmonizing their needs and interests, as well as integrating stakeholder needs into organization’s performance plans. Many business leaders acknowledge the fact that organizations have their stakeholders though the dynamism and interdependence of relationships between organization and stakeholders are not explored enough. Every organization has its unique stakeholders and their groups. Stakeholders can be internal or external and their interests are closely interrelated with organization’s wealth. They share a common risk, a possibility of gaining benefits or experiencing losses or harms, as a result of organization’s operations The stakeholder concept of the organization implies that favorable relationships and linkages with stakeholders, both internal and external, are important assets of the company. Indeed, they are part of its current wealth and its capacity to generate more wealth in future Total quality management only raises the problem but does not provide any solution. Though the nature of total quality management implies the emergence of stakeholders and satisfaction of their needs because realization of it gives positive impact to all organization’s stakeholders – good quality products provide benefit and delight to customers, richer organizations make richer society, establish new work places, implementation of new technologies allows to save resources and herewith provides positive ecological effect. Positive influence on society or community improves organization’s goodwill and gives permission to organization to act and operate in the same way. From this point there is one drawback in scientific literature that there are no wider discussions or references how to pursue that. Quite often constructive cooperation with stakeholders is missing; unsatisfactory alignment of interests emerges and all that impedes satisfaction of stakeholder interests and reduces organization competitiveness. People and organizations are apt to keep relationships when this corresponds to their interests. Organizations could want to start cooperation with stakeholders in order to gain trust and keep the costs low in execution of their plans, in order to improve their good-will when satisfying stakeholders’ expectations and needs. During initial stage interests of stakeholders are identified but later a more difficult process comes where consensus is sought from the long-range perspective Three different notions could be distinguished on how to harmonize and satisfy differing interests: accommodation of interests, alignment of interests, and balancing of interest. It is necessary to achieve a high level of stakeholder satisfaction having in mind that the most important stakeholder group is customers and through satisfaction of their interests, other stakeholders’ interests could be satisfied. Stakeholder satisfaction is vital for organizations in order to get license to operate and produce output, to gain resources and trust and therefore to be competitive and successful from the long-term perspective.