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Means for Satisfaction of Stakeholders’ Needs and Interests

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Author(s): Dalia Susnienė | Povilas Vanagas

Journal: Engineering Economics
ISSN 1392-2785

Volume: 5;
Start page: 24;
Date: 2007;
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Keywords: stakeholder satisfaction | harmonization of stakeholder interests | stakeholder analysis | organization’s competitiveness

ABSTRACT
The paper focuses on satisfaction of stakeholderthrough carrying out comprehensive stakeholder analysisincluding identification and prioritization of stakeholders,understanding and harmonizing their needs andinterests, as well as integrating stakeholder needs intoorganization’s performance plans. Many business leadersacknowledge the fact that organizations have their stakeholdersthough the dynamism and interdependence ofrelationships between organization and stakeholders arenot explored enough. Every organization has its uniquestakeholders and their groups. Stakeholders can be internalor external and their interests are closely interrelatedwith organization’s wealth. They share a common risk, apossibility of gaining benefits or experiencing losses orharms, as a result of organization’s operations Thestakeholder concept of the organization implies that favorablerelationships and linkages with stakeholders,both internal and external, are important assets of thecompany. Indeed, they are part of its current wealth andits capacity to generate more wealth in futureTotal quality management only raises the problembut does not provide any solution. Though the nature oftotal quality management implies the emergence of stakeholdersand satisfaction of their needs because realizationof it gives positive impact to all organization’sstakeholders – good quality products provide benefit anddelight to customers, richer organizations make richersociety, establish new work places, implementation ofnew technologies allows to save resources and herewithprovides positive ecological effect. Positive influence onsociety or community improves organization’s goodwilland gives permission to organization to act and operatein the same way. From this point there is one drawbackin scientific literature that there are no wider discussionsor references how to pursue that. Quite often constructivecooperation with stakeholders is missing; unsatisfactoryalignment of interests emerges and all that impedes satisfactionof stakeholder interests and reduces organizationcompetitiveness. People and organizations are apt tokeep relationships when this corresponds to their interests.Organizations could want to start cooperation withstakeholders in order to gain trust and keep the costs lowin execution of their plans, in order to improve theirgood-will when satisfying stakeholders’ expectations andneeds. During initial stage interests of stakeholders areidentified but later a more difficult process comes whereconsensus is sought from the long-range perspectiveThree different notions could be distinguished on howto harmonize and satisfy differing interests: accommodationof interests, alignment of interests, and balancing of interest.It is necessary to achieve a high level of stakeholdersatisfaction having in mind that the most importantstakeholder group is customers and through satisfactionof their interests, other stakeholders’ interests could besatisfied. Stakeholder satisfaction is vital for organizationsin order to get license to operate and produce output,to gain resources and trust and therefore to be competitiveand successful from the long-term perspective.
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