Impact of Stakeholder Value and Intersection on Workplace Dynamics

This report delves into the critical issues of stakeholder value, intersectionality, and their implications within the workplace. It begins by defining and analyzing the concept of maximizing shareholder value, exploring its potential consequences such as unethical business practices, corruption, and negative impacts on employees. The report then examines the principle of corporate governance, highlighting the importance of shareholder value while acknowledging its limitations. The study further explores the concept of intersectionality, focusing on how it affects workplace exploitation, particularly for women of color and individuals from diverse backgrounds. It discusses wage inequality, discrimination, and stereotyping, illustrating how these issues are exacerbated by intersectional identities. The report incorporates real-world examples and academic research to provide a comprehensive understanding of these complex dynamics, culminating in a discussion of how these factors affect both workplace operations and an organization's profitability.

Running head: ISSUES OF STAKEHOLDER AND INTERSECTION
ISSUES OF STAKEHOLDER AND INTERSECTION
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ISSUES OF STAKEHOLDER AND INTERSECTION
Maximizing Shareholder Value and Principle of Governance:
Introduction:
To understand the consequences of the maximizing Shareholder value, it is important to
understand the definition of value maximization. The concept of value maximization refers to
increasing the net worth of the Shareholders, involved within an organization. Therefore, the
value maximization refers to the chain of communication and the role of the Shareholders within
the management of the organization.
Maximizing Shareholder’ Values:
The theory has recognized that the pattern of communication between the mangers is
political and diplomatic in nature, and motivating the managers is extremely difficult rather than
motivating the employees. Therefore, the value maximization of the Shareholders is not
essentially a strategy of the organization rather it is an awareness and understanding among the
Shareholders and the managers of an organization, to understand how they can better their
positions in the organization, and increase their values within the organizational operations
(POBLADOR, 2017). At the same time it refers to the re- establishing oneself within the
organizational structure, and exercise more power and interest in the conducts of the
organization. However, maximizing the values of the Shareholders within an organization,
comes across with a number of consequences, and these are enlisted in the following.
Analysis:
Firstly, it can lead to a bad business practice. A number of instances can be mentioned or
notified, where maximizing the Shareholder value had led to unsustainable business practices.
These practices essentially come across with short time gains, however, eventually with time, the
mass defaults and the foreclosures take place within the operations (Rezaee, 2017).
Secondly, maximizing the value of the Shareholders can ensure the practice of corruption
within the organization. Maximizing the value of the Shareholders ensure an increase
involvements and practice of power in the decision making process and in the operational
aspects, which eventually lead to ensuring a gain in the personal profit, of the Shareholders.
Therefore, such practices then lead towards corrupted business practices (Barry, 2018).
A third factor is that it can be very influential on the employees. Maximizing the
Shareholders’ value, often includes a practice of biasness and nepotism within the organization.
Often the Shareholders include the acts of favouritism within the organisational conducts which
affects the employees, both professionally and personally (Afza, & Nazir, 2014). At the same
time, in order to ensure a personal gain, the employees are often seen to have been dominated
and exploited by the Shareholders.
Principle of Governance:
The organizational members have stated that including the concept and practice of
maximizing the value of the Shareholders is crucial to the practices of corporate governance.
Maximizing the value, has benefitted the organization is a number of ways, for example, the

ISSUES OF STAKEHOLDER AND INTERSECTION
returm rate form the shareholders is often much higher. The business analysts have stated that
investment in the shareholders of an organization can result in maximizing the present value.
Also, the wealth of the shareholders is equalled with the number of market shares they have thus,
bettering the position of the company. However, the decision making system lies with the
shareholders of the organization. According to Erick, Thies, & Lindsey (2018), in the decision
making process for the corporate social responsibilities, it is the shareholder who play a huge
part. The basic understanding is that no organization will think about the social contributions
until and unless it is profitable for them.
Evaluation:
Therefore, it can be said that maximizing the values of the Shareholders may not be the
most dominant behaviour or principle of the corporate governance, but it is one of the most
important aspect.
Intersection and Workplace Exploitation.
Introduction:
Exploitation of the employees within the workplace considering their racial attributes
their colour, and their class background had always been common within the workplace.
Analysis:
The intersectionality approach is also included within the workplace, which is potentially
affecting the women working in an organization, and this is one of the prime concerns of the
organizational managers. The intersectional concept refers to the exploitation of women, within a
workplace, which is associated with the other identities they carry apart from being a woman (de
los Reyes, 2017). For example, in the labour market of United States, the colour of the
employees is one of the most dominant factor, and being a woman of colour would pose an
employee to a number of challenges both within the organization, and outside of it. Within the
labour market of the country, there are two essential forms of discrimination or exploitation, are
practiced, one is wage inequality and the other is discrimination and stereotyping. Now, the
researchers have suggested that the wage inequality and the inequal treatment within the
workplace is very much in practice in most of the firms of the country, however, the
intersectional approaches of colour, race and class and sexual orientation, increases the intensity
of the exploitation. In a recent study, it is show that the successful CEO of TaskRabbit, Stacy
Brown, has also faced a similar issue in her career, even from the audience. The vice president of
Catalyst, a non- profit organization had stated that she felt that they are voicing against
something which should be normalized while protesting against the practice of intersectionality
within the workplace (Jones, Misra, & McCurley. 2013). The assistant professor of sociology in
Brooklyn College, had also stated that she had faced challenges from her fellow teachers, as well
as students, for being a black, abut especially because being a black woman, and she had stated
that her fellow black professors had not come across as many problems as her, because of their
colour. More importantly, in a recently published study, a Latina woman had confided that she
had been openly harassed within the organization and had faced challenging work environments
and wage difference because of her nationality (Lee, 2017).

ISSUES OF STAKEHOLDER AND INTERSECTION
Evaluation:
The intersectional approach suggests that the women of colour, or different race, or
different sexual orientation, are subjected to experience more discrimination than the white
women, and the discriminations, exploitations and stereotyping is practiced by the white women
within the workplace as well (Collins, 2015). The growth opportunities, the working conditions,
and the wage structure, all are affected and influenced by the nationality, colour, racial and class
background and the personal preferences of the considered women.
Conclusion:
In the present study, two important aspects of a workplace have been discussed. Both the
factors of shareholders and exploitation within the workplace, developing upon the
intersectionality approach impacts upon the workplace operations, as well as the profit making
aspects of an organization.

ISSUES OF STAKEHOLDER AND INTERSECTION
References:
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review. European Journal of Scientific Research, 119(2), 255-264.
Barry, B. (2018). Expression of Concern Regarding Jensen (2002),“Value Maximization,
Shareholder Theory, and the Corporate Objective Function”. Business Ethics
Quarterly, 28(2), 237-239.
Collins, P. H. (2015). Intersectionality's definitional dilemmas. Annual review of sociology, 41,
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de los Reyes, P. (2017). Working life inequalities: do we need intersectionality?. Society, Health
& Vulnerability, 8(sup1), 1332858.
Elrick, J., Thies, C. F., & Lindsey, E. R. (2018). The Social Responsibility of Business Milton
Friedman Reconsidered. Journal of Markets & Morality, 21(2), 297-308.
Jones, K. C., Misra, J., & McCurley, K. (2013). Intersectionality in sociology. Available at:
socwomen. org/wp-content/uploads/swsfactsheet_intersectionality. pdf (accessed 28
March 2015).
Lee, J. J. (2017). US Workers Need Not Apply: Challenging Low-Wage Guest Worker
Programs. Stan. L. & Pol'y Rev., 28, 1.
POBLADOR, N. S. (2017). Shareholder Theory, Corporate Responsibility and the Ethics of
Managerial Conduct. t'OLICY, 29.
Rezaee, Z. (2017). Corporate sustainability: Theoretical and integrated strategic imperative and
pragmatic approach. The Journal of Business Inquiry, 16.