Business Shareholder Value in Organizations: Term Paper

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An organization should be more than an instrument that shareholders can use to realize a means. It should represent a coalition between resources and suppliers to increase the well being of all involved in an organizations success (ELTC, 2005). Strongly motivated employees and customers can work together to help an organization pursue interests that meet the needs of all rather than a select group of stakeholders. This will not only maximize an organization's profits but also benefit society at large.

The key to maximizing these relationships is managing the welfare of stakeholders in a general sense (ELTC, 2005). Shareholders are but one of many stakeholders in an organization. A firm should be interests in meeting the needs of shareholders, however other stakeholder relationships are just as valuable to a corporations profitability and success as relationships with shareholders.

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Conclusions

All stakeholders in an organization have expectations. Meeting the needs of all stakeholders, not just shareholders, is essential for corporate success. Shared interests, common goals and a coalition of team members is vital to an organizations long-term corporate financial success regardless of the industry a company is involved in.

All stakeholders should share some interest and responsibility for executing an organizations objectives. Only then will an organization successfully meet all stakeholders' needs and not cater to one group over another. Contributions by different stakeholders can help an organization gain a more competitive stance and realize greater profits in the long-term.

Reference:

ELTC. (2005). "Identifying stakeholders - a primary and ongoing task." Egyptian

Leadership and Training Consultancy. Retrieved September 7, 2005: http://www.careermideast.com/Recruiter/Articles/Covey/Stakeholders.aspx

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