A Case based analysis on the management of stakeholders in Alriver Export Corporation and Modern Concept Woodshop

• Main Authors: Avila, Ma. Loren Cristina R., Deluria, Pamela Rae C., Kalingasan, Vera Katrina A., Narag, Justinne Rae C.
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Management > Moral and ethical aspects; Social responsibility of business; Business ethics
• Online Access: https://animorepository.dlsu.edu.ph/etd_honors/312
• Institution: De La Salle University

Recent studies show that there has been a shift in the goals of firms, from maximizing and creating shareholder wealth, to balancing and accommodating the needs of stakeholders in order to attain firm success. This raises the question of how firms should identify its salient stakeholders as well as the appropriate management strategy a firm must implement as a response to stakeholder claims. In this paper, we examine the stakeholder management relations of Alriver Export Corporation and Modern Concept Woodshop through a multiple case study. The focal aims of our study are: To identify stakeholder saliency according to the possession of power, legitimacy and urgency of primary stakeholders To determine the strategy implemented by firms as a response to stakeholder saliency To measure how firms respond to stakeholder expectations and/or pressures and to validate our a priori expectations based on how Alriver Export Corporation and Modern Concept Woodshop manage its stakeholders. This study builds on the definition of a stakeholder as conceptualized by Freeman (1984), and centers on the rationale for the identification of salient stakeholders, as developed by Mitchell, Agle & Wood (1997). Based on the possession of power, legitimacy, and urgency, key stakeholders will be further categorized into seven classes namely: (1) Discretionary Stakeholder (2) Dormant Stakeholder (3) Demanding Stakeholder (4) Dominant Stakeholder (5) Dependent Stakeholder (6) Dangerous Stakeholder & (7) Definitive Stakeholder (Rawlins, 2006). In this study, a new stakeholder class, Dispensable Stakeholder, is developed and introduced due to lack of sufficient information regarding company stakeholders that do not have significant influence over the firm. These stakeholder classes will be the basis for formulating a strategy for stakeholder management. The stakeholder management strategy implemented will be based on the framework developed by Clarkson (1995). Through a normative and descriptive research, the main relevance of this study then lies in our best interest to provide a foundation that researchers in the Philippines can use to further explore the relationship between attention to stakeholders and firm success.