#stakeholder theory

[animeandcatholicism]

Why Management makes more money than labor

So, there is a common question which is fair of why capital is entitled to the lion's share of profit when labor puts more effort in and it's a fairly simple answer. It all boils down to the assumption of risk and that's the rub. Personally, I'm not opposed to workers getting more money and a direct share of the profits but, if things go wrong then you have to deal with the consequences.

The thing is, you probably do not want to have your average line worker making the day to day decisions in how the company is going to move forward. Sure, have people being able to say have more direct control over their schedules but actual business practices and decisions is a very tough sell.

It's why direct democracy is a bad idea because everyone gets a say and then they get mad whenever things go badly.

A compromise would be to include a member on the board or other governing body that either represents labor or mediates between labor. Because, representation both has rewards and responsibility.

Besides, this can be done in a free market where labor can band together and decide collectively to sell their labor and it already happens to a degree with unions. However, we also forget about the human factor and it comes down to are you motivated enough to do this and will other people go along with you?

I mean, if you have a nice white collar job or comfy middle management spot do you want to spend that time, is it worth it? Do my dues and unpaid hours negotiating really make a difference in the end or is it just a way to haggle for a couple more cents at the end of the day? Do I want to risk my spot if things go in a tail spin.

Besides, no Socialist nation has ever has had this dynamic in the first place. Under Lenin the worker organized factories were replaced by the managerial class from the Tsarist regime in order to boost efficiency, Venezuela, Cuba and China have party/regime officials managing things and having an unequal split because, do you really think that the average worker is going to have the same level of investment in the operations of a business, especially if you know that the job is going to be temporary or the owner is investing the majority of the capital.

I guess in the end if we want to have a more equal representation everyone gets a stake based on the risk they have if something goes wrong. If you're saying that it's not fair well, put some more skin in the game.

[markcamilleri]

Promoting strategic corporate social responsibility among practitioners

Promoting strategic corporate social responsibility among practitioners

What is Strategic Corporate Social Responsibility?

Organisations engage in Strategic Corporate Social Responsibility (Strategic CSR) when they integrate responsible behaviours in their corporate practices (Camilleri, 2018; Porter & Kramer, 2011). Therefore, Strategic CSR is often evidenced by the businesses’ engagement with key stakeholders, including customers, employees, shareholders,…

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[bizsum]

In The Leadership Contract, Vince Molinaro provides solutions to the problems of unaccountable leadership. He articulates the ways in which responsible leadership can create a successful and enduring organization. Dynamic leaders are faced with many obstacles—they must embody practices and habits that will benefit their organizations and the employees who look to them to model the traits of a contemporary leader. Ultimately, a signed contract, embedded in the organization, empowers the leadership to perform and deliver to stakeholders, customers, and clients the value they expect.

[socialintrapreneurs]

What Is "Stake"?

Stakeholder theory, which has been described by Edward Freeman and others, is the mirror image of corporate social responsibility. Instead of starting with a business and looking out into the world to see what ethical obligations are there, stakeholder theory starts in the world. It lists and describes those individuals and groups who will be affected by (or affect) the company’s actions and asks, “What are their legitimate claims on the business?” “What rights do they have with respect to the company’s actions?” and “What kind of responsibilities and obligations can they justifiably impose on a particular business?” In a single sentence, stakeholder theory affirms that those whose lives are touched by a corporation hold a right and obligation to participate in directing it. (Flatworld)