Reference no: EM13943677

Stakeholders in Non-Profit Corporations

In the non-profit business firm, the interest, opinions and concerns of the stakeholders are managed in the form of actions. When a non-profit organization starts a project, it organizes meetings with the internal stakeholders and conduct survey with the external stakeholders. These activities are important for the firm to analyze the different interest of the stakeholders in the particular issue. Further, after gathering their responses, the team analyzes the relevancy of the interest and opinion with the specific needs and requirements of the goals of the company and concerns of the stakeholder (Lawrence, & Weber, 2013, p. 314).

After this evaluation, the non-profit organization stresses on the concern of the stakeholders and community on the issues. For assuring them that their views are considered in the firm, the company implements their suggestions. For instance, in an event of providing education to poor and needy people, the stakeholders of the firms make sure that the organization will organza a full time study for the children (Boutelle, 2004). The nonprofit firm always focuses on the concerns of the stakeholders to provide them satisfaction by implementing their suggestion in real terms. High influence of stakeholders and their high interest is always considered in the nonprofit organization.

In the for-profit business firm, the business organization makes high efforts to consider the stakeholder's interest, opinion and concern to manage a profitable situation. First of all, the business organizations conduct market research to analyze the needs and requirements of the external stakeholders. Further, the companies follow all the labor rules and regulation to make sure that all the internal stakeholders are considered for their welfare, during the decision making process, the company involves both the internal and external stakeholders to ensure them that their perceptions are valuable to the firm (Lawrence, & Weber, 2013, p. 314).

In addition to this, to make sure that the firm is highly concerned about the stakeholder's opinion and welfare, the company makes corporate social responsibility efforts and defined all the guidelines and procedures which are taken by the firm. These corporate social responsibility and community welfare efforts of the business organization increases the involvement of stakeholders in the firm and develop a feeling among them that they are a significant part of the firm, The company always focuses on high interest and high influences of stakeholders in the business organizations. A two way communication path is also followed by the firm to improve the stakeholders' involvement (Boutelle, 2004).

Differences in the Approach of For-Profit and Nonprofit Corporations

Yes, the approaches used by for profit corporations and the nonprofit corporations to manage the stakeholder's interest and concerns are quite different because of differences in the basic goals and objectives of the firm. The for profit organization starts CSR programs because their aim is to retain the employees and earn profit by being a good corporate citizen, whereas the non-profit organizations eventually works for the social development, so they talk directly to the stakeholders to manage their concerns (Boatright, 2006).

In addition to this, for profit firm focuses on those concerns of the stakeholder which brings profit from them such as green marketing, waste management and less emission of hazardous gases from factories. On the other hand, the non-profit corporations conduct survey with the stakeholders to resolve the hidden social issues like domestic violence, child labor, employees' rights and protection, environmental protection recycling, which are not only beneficial for the firm but also for the society

The approach of for profit firm is to analyze the market environment to understand the stakeholder's interest, whereas the approach of nonprofit firm is to conduct the survey and gather feedback of stakeholder to make sure that the firms are managing their needs and focusing of development of the society (Lawrence, Weber & 2013, p. 374).

Stakeholder's Conflicts

Interest and opinion of the stakeholders for both the for-profit and nonprofit business organizations are critical for the long term success of the business organizations (Boatright, 2006). In all the business firm, for profit and nonprofit, the stakeholder conflicts and interests can be focused by following the two questions:

1. How the approach of developing an open communication path for the stakeholders is critical to understand their interests and corners?

2. What types of conflict management programs are used by the business organizations to resolve their conflicts with the stakeholders and understand their interest?

These research questions are useful to evaluate the management techniques used by the organizations to analyze the stakeholder's interest and opinion. These are related to the qualitative research methods and the company can use these questions in the focus group analysis and take feedback of the employees and other stakeholders to know about the process of the firm. A detailed response of the stakeholders will help the companies to know that at what extent it is able to resolve the conflicts of the stakeholder. Consideration of stakeholder's opinion is also taken in this feedback and stakeholder will feel more comfortable in the firm. Their interest and influences will increase with the help of this focus group analysis (Lawrence, & Weber, 2013, p. 374).

References

Boutelle, J. (2004). Understanding organizational stakeholders for design success. https://boxesandarrows.com/understanding-organizational-stakeholders-for-design-success/

Lawrence, A.T., & Weber, J. (2013). Business and Society: Stakeholders, Ethics, Public Policy (14th edition). McGraw-Hill Education.