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Essay on The Stakeholder Theory by Thomas Donaldson

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A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. In “The stakeholder theory of the corporation: Concepts, evidence, and implications” by Thomas Donaldson , he quotes Stanford research institution and calls stake holders “those groups without whose support the organization would cease to exist.”

Therefore a stakeholder can be thought of as some who both influences and is influenced by an organization. According to Greasley (1999, p9) there are 3 types of stake holders: internal, connected and external.
Internal stakeholders are described as “the managers and employees of a company.” Connected stakeholders are those that are beyond the immediate boundaries …show more content…

However, for this scenario it will be assumed that the stakeholder concept stands, and hence will assume the stakeholder concept is infallible.
It will be assumed that the large mining company is publicly owned and is situated a more economically developed country (MEDC). Therefore the company will have significantly weaker influence from the government than a government owned company. It will also imply that trade unions associated with the company will likely be strong, hence workers will have higher influence than they would in a less economically developed country (LEDC) where unions would be weaker .
The above assumptions will also help in identifying stakeholders within the mining company; stakeholders will be divided up into the 3 defined in Greasley (1999, p9).
Firstly, internal stakeholders, those connected directly to the firm. This group include will account for anyone working within the firm. In the context of the mining company, this includes people like miners, even jobs like those of a janitor in the building. However, it is important to note that it also involves much more powerful stakeholders like senior management, who play a large role in the decisions made by the company.
Connected stakeholders, will include groups like shareholders, customers and suppliers

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