Organization Design and Management: Stakeholders and CSR Analysis

This report delves into the intricate relationship between stakeholders and Corporate Social Responsibility (CSR). It begins by defining stakeholders and their various groups, both internal and external, within an organization, using Uber as a case study. The report then explores stakeholder theory, outlining its key principles and benefits, emphasizing the importance of managing stakeholder relationships for enhanced productivity and financial gains. It further defines CSR, highlighting its significance in improving a company's reputation, operational efficiency, and environmental impact. The stakeholder approach to CSR is examined, emphasizing the interconnectedness of stakeholder theory and CSR, and the practical application of stakeholder models for issue identification and resolution. The report concludes by illustrating how stakeholders significantly influence CSR practices, demonstrating how organizations can leverage stakeholder engagement to strengthen their reputation and improve overall business performance. The report is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Organisation Design and
Management
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Stakeholder Concept...............................................................................................................3
Different Stakeholder Groups.................................................................................................3
Stakeholder Theory................................................................................................................5
Corporate Social Responsibility.............................................................................................6
Stakeholder Approach to CSR................................................................................................7
CSR in the Stakeholder’s Perspective....................................................................................8
Impact of Stakeholders on Corporate Social Responsibility..................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Stakeholders can be defined as individuals or a group of individuals that has an interest as
well as power within an organisation (Atkinson, Dávila and Mattingly, 2019). There are different
stakeholder groups within an organisation like employees, customers, suppliers, communities
etc. Whereas, corporate social responsibility or CSR is mainly concerned about contributing to
the welfare of the society. This report explains the concept of stakeholders when implemented to
the sector of CSR or Corporate Social Responsibility. It also provides a brief explanation about
different stakeholder groups and CSR issues associated with them.
MAIN BODY
Stakeholder Concept
If an organisation has a greater number of stakeholders, the amount of risk associated
with a particular project of the company is reduced. This is because stakeholders not only
provide a financial support to the company, but also broaden the number of people who care
about its overall well-being. The actions of the stakeholders determine the decisions that are
made by the company. It is important for an organisation to be aware that these stakeholders
should be managed in an appropriate way. During a project, it is essential for the company to
find who are the main stakeholders because the overall success of the project depends on them.
The stakeholders should be prioritized by the organisation at all times. The reason behind this is
that they possess the power. It is important to keep all the stakeholders of the company informed
about all the important decisions that are made. This can be done through different ways like,
providing them status reports from time to time and ensure that right communication channels
are used (Bakar and et. al., 2019). The stakeholders within an organisation possess a clear and
straight-forward perspective of the product. Not all stakeholders have equal levels of interest and
power and therefore, product managers should devise strategies so that the related information
can be communicated in the most effective way.
Different Stakeholder Groups
Internal Stakeholders
Stakeholders within a company can either be internal or external. Internal stakeholders
are those who have an interest in the project as they are employed by the company or have
invested in it. The different internal stakeholders include board members, employees, investors
3

and managers. Internal stakeholders are also referred to as primary stakeholders as they have a
direct stake in the overall process of achieving goals and objectives of the organisation.
Stakeholders that are internal to the company are important for an organisation because they
work directly for its welfare as well as success. The internal stakeholders of Uber are directly are
a part of the different activities of the project. The different internal stakeholders are described
below-
 Employees – They are considered to be the primary stakeholders of the company because
they possess both time as well as financial investments within the company. Apart from
this, they also play a vital role in the development of strategy as well as operations within
the workplace.
 Owner – The owner of the firm possesses a considerable amount of shares within the
company (Deakin, 2019). They also have the power to make important decisions
regarding operations as well as internal and external stakeholders.
 Managers – Managers at Uber also play a significant role in formulating strategies for
the firm. They are also responsible for making decisions that can help the company in
achieving its goals and objectives.
External Stakeholders
These are the stakeholders those who are outside the company and are indirectly affected
by its decisions. Customers, suppliers, creditors and government agencies are examples of
stakeholders that are external to the company. They are also referred to as secondary
stakeholders because they do not work directly inside the company. The different external
stakeholders of Uber are explained below -
 Suppliers – These are the stakeholders that work in close relation to the company and it
is important to maintain a strong relation with them (Espitia‐Escuer and Garcia‐Cebrian,
2020). This is done by making payments on time, having an effective communication etc.
 Customers – Customers are the most important external stakeholders whose needs and
requirements must be fulfilled. In order to maintain a long-term relation and retain them,
it is important to interact with them regularly through social media emails, effective
delivery services etc. and understand their needs properly.
4

 Partners – Businesses or organisations that a form engages or partners with are referred
to as partners. They possess a significant amount of decision making power as well as
interest in the business operations.
 Investors – These stakeholders can include vendors that are external to the company and
have a right to contribute by giving ideas as well as advice to the management of the
firm. Also, they help in improving the overall image of the business in the market.
Thus, external stakeholders possess the power and can voice their opinions on the
decisions that are made by the company.
Stakeholder Theory
The stakeholder theory is based on the view that the only responsibility of an organisation
is to enhance the profits resulting to its stakeholders. It lays focus on the interrelationship
between the company with all the people who possess a stake in it (Gustafsson, Hermelin and
Smas, 2019). They can include employees, customers, investors, suppliers etc. The theory
outlines the nature of the stakeholders, their values as well as level of influence on the
organisation. There are six key principles of the stakeholder theory which are explained below -
 The principle of governance – This particular principle of the stakeholder theory is
concerned with how can the rules that govern the relationship of the firm with its
stakeholders can be revised. This is done with their consent if there have to be any
changes.
 The principle of entry and exit – This principle states that it is important to have rules
that are clearly defined relating to hiring qualified, experienced employees and their
termination.
 The principles of contract costs – Each stakeholder within the stakeholder bears and
equal cost or it should be proportional to the advantage that the stakeholders have within
the company (What is the Stakeholder Theory?, 2020). Since all costs are not financial, it
can sometimes be difficult to quantify them.
 The principle of externalities – This is another principle of the stakeholder theory that is
concerned with how a particular group of stakeholders that does not benefit from the
decisions and actions of the firm has to suffer from difficulties and bear the costs.
5

 Agency Principle – According to this principle, the manager of an organisation is its
agent and therefore, possesses responsibilities that relate to the stakeholders as well as
shareholders of the firm.
 The principle of limited immortality – This particular firm ensures the overall success
of the firm as well as owners. This is because it is important for the company to exist for
a longer period of time.
The stakeholder theory is important because it addresses the different business ethics,
different values and morals while different stakeholders are managed within the company that
are involved in a project. There are various benefits of the respective theory because if the
employees, one of the stakeholder group of the company feel that they are being involved and
valued by the company, then they will put in efforts and work hard for the organisation to help it
achieve its goals and objectives (James, 2019). As a result, the overall productivity of the
company as well as the employees will increase. This will further lead to an increased number of
financiers willing to invest in the company. There is a significant increase in the overall value
and the market share of the company.
Corporate Social Responsibility
CSR can be referred to as an organisation's commitment towards managing the different
social, environmental as well as economic impact of its business operations. In simple words, it
is the constant commitment of a company to enhance the quality of life not only of its
employees, local community but also the society on the whole. CSR is a part of an organisation's
approach towards corporate governance. The different CSR activities can include investing the
profits earned by the company in different environmental programs or towards the health and
safety of local communities. Supporting different charitable organisations within the community
a company operates as well as promotion of equal opportunities for both males and females are
also examples of CSR activities (Kunz and Fischer, 2020). There are many benefits of corporate
social responsibility like the overall reputation of the company is improved, a significant amount
of money is saved through the operational efficiency and the impact on environment is
minimised.
It is important for a company to practice corporate social responsibility because it not
only improves the overall efficiency of the business but also contributes to its overall reputation
in the market. Uber has adopted various measures in which it practices corporate social
6

responsibility. The company offers the option of re sharing the cabs due to which the overall
carbon emissions are reduced to a considerable amount. The company believes that trips that are
shared can be more sustainable as compared to those which are not. This has led to the overall
levels of air to become cleaner. Practising corporate social responsibility means that a company
is concerned about various social issues within the society and not only focuses on generating
profits. Due to this, the overall public image of the company is improved along with an increased
awareness about the brand among customers. This is because people are increasingly becoming
conscious about the environment. Apart from this, the company also gains a competitive
advantage over competitors and an increase in the overall customer engagement.
Stakeholder Approach to CSR
The stakeholder theory is primarily based on the belief that the stakeholder-CSR
relationships are important assets that corporate organisations must manage. While the
stakeholders concept addresses the issue about who is accountable for the business, corporate
social responsibility primarily aims to the responsibilities that the business must fulfil. Both these
concepts are interrelated with each other (Rudani, 2020). The stakeholder approach is a more
practical way in which the performance of the firm as well as key groups of stakeholders can be
assessed. A stakeholder model is an important framework that helps an organisation in
identifying the different issues related to the stakeholders and thus establish measures that can be
used to address the same. This can be done by gathering data about the stakeholders within the
organisation and comparing the same with organisations across different industries. Therefore, it
cam be said that the stakeholder theory can provide important insights. Apart from this, it also
makes it easier for the companies to understand and appropriately define the responsibilities.
The stakeholder concept also makes the process of collection and analysing the data
related to corporate social responsibility easier. Also, the stakeholder approach indicates that an
organisation is not only responsible to the owners but also to the different stakeholders like
customers, managers, employees etc. The managers within an organisation can adopt the CSR
strategy which is influenced by the stakeholders (Shepherd, 2019). This is done in order to
generate a reputation that is strong and helps in improving the overall performance of the
business. It can be said that it is necessary for the organisation to make sure that the interests of
the employees as well as various public stakeholders are addressed in an effective manner. The
stakeholders within an organisation can significantly impact on the way CSR is practised. This is
7

because CSR has gained a lot of importance over the years. And nearly all organisations have
made efforts to practice the same.
CSR in the Stakeholder’s Perspective
Adopting corporate social responsibility helps an organisation with gaining an access to
the opportunity of engaging with the different stakeholders. The number of companies adopting
corporate social responsibility has grown over the years. Organisations are formulating CSR
policies in order to make sure that they contribute to the overall welfare of the local communities
as well as the society on whole. Also, the stakeholders are increasingly raising their concerns
about various environmental issues. Stakeholders are considered to play an essential part in the
overall process of decision making (Srai and Lorentz, 2019). The perspective of stakeholders has
changed and they show interest in getting involved in the decisions that are made regarding
practising corporate social responsibility. This is because they drive innovation and also
contribute to the overall reduction of risks that are can otherwise affect the overall performance
as well as reputation of the firm. The choice of the different stakeholders of an organisation can
also have an influence on the economic development of a particular community.
The stakeholder theory states that an organisation's behaviour is based on its
stakeholders, both internal as well as external. Corporate social responsibility is important for
stakeholders because involving them can lead to creating a greater 9impact on the communities.
If the involvement of stakeholders is less when corporate social responsibility is being practised,
it can lead to them feeling left behind and ignored (Vlotman, Smedema and Rycroft, 2020). It
can also have a poor impact on the project that is being carried out and lead to ineffective
communication. Therefore, in order to set up a project relating to CSR, it is important for the
firm to communicate all the important information to the stakeholders openly about the same.
Stakeholders who have a relevant experience in the field should also be involved.
Impact of Stakeholders on Corporate Social Responsibility
The involvement of stakeholders and decisions that are made collaboratively on the
various CSR issues can represent a high level of programs that involve participation. The
stakeholders that a company decides to engage with its projects can vary from project to project.
There are many ways in which stakeholders can impact the overall practice of corporate social
responsibility. This can include driving innovation, which means that if an organisation involves
its stakeholders, they can help the company in identifying new opportunities for carrying out
8

their business processes (Why engaging with your stakeholders is important for CSR reporting,
2020). This is because the flow of information in the company is improved. Apart from this, the
stakeholders also help in building social capital. Lastly, the overall risks are reduced as the
stakeholders can provide an early warning regarding any potential risks that can affect the overall
reputation of the firm.
It can be said that as per the stakeholders' view, they ought to participate in the decisions
that are made by the company based on practising corporate social responsibility. Concerns of
the stakeholders can influence the overall way in which a firm formulates as well as implements
different strategies. It can further lead to creating an impact on the way in which the company
interacts with its different stakeholders (Williams, 2020). Therefore, a company that is socially
responsible and involves its different stakeholders in the decision making process can increase its
overall profitability as well as performance. This will further lead to the company gaining a
competitive advantage over competitors and an increase in the morale of employees.
CONCLUSION
From the above report, it can be concluded that the stakeholder concept can be applied to
the sector of CSR. There are different groups of stakeholders namely, internal as well as external
stakeholders. These groups include customer, employees, owners, government etc. And, they
should be involved in the decisions that are made regarding practising CSR in order to make
them feel involved and enhance overall business performance.
9

REFERENCES
Books & Journals
Atkinson, A., Dávila, J. D. and Mattingly, M., 2019. The challenge of environmental
management in urban areas. Routledge.
Bakar, N. A. A. and et. al., 2019. Dynamic Metamodel Approach for Government Enterprise
Architecture Model Management. Procedia Computer Science. 161. pp.894-902.
Deakin, M. ed., 2019. Local authority property management: initiatives, strategies, re-
organisation and reform. Routledge.
Espitia‐Escuer, M. and Garcia‐Cebrian, L. I., 2020. Efficiency of football teams from an
organisation management perspective. Managerial and Decision Economics. 41(3).
pp.321-338.
Gustafsson, S., Hermelin, B. and Smas, L., 2019. Integrating environmental sustainability into
strategic spatial planning: the importance of management. Journal of Environmental
Planning and Management. 62(8). pp.1321-1338.
James, T. S., 2019. Comparative Electoral Management. Routledge.
Kunz, J. and Fischer, M., 2020. Virtual design and construction. Construction Management and
Economics. 38(4). pp.355-363.
Rudani, R. B., 2020. Principles of management. McGraw-Hill Education.
Shepherd, D., 2019. The BIM Management Handbook. Routledge.
Srai, J. S. and Lorentz, H., 2019. Developing design principles for the digitalisation of
purchasing and supply management. Journal of Purchasing and Supply Management.
25(1). pp.78-98.
Vlotman, W. F., Smedema, L. K. and Rycroft, D. W., 2020. Modern land drainage: Planning,
design and management of agricultural drainage systems. CRC Press.
Williams, G., 2020. Management Millennialism: Designing the New Generation of Employee.
Work, Employment and Society. 34(3). pp.371-387.
Online
What is the Stakeholder Theory?. 2020. [Online]. Available
through:<https://www.marketing91.com/what-is-the-stakeholder-theory/>.
Why engaging with your stakeholders is important for CSR reporting. 2020. [Online]. Available
through:<https://www.greenstoneplus.com/blog/why-engaging-with-your-stakeholders-
is-important-for-csr-reporting>.
10

Week 3
1. Explain a minimum of three key points that you've learned from today’s seminar
activities/group discussion exercises. What will you do differently as a result of this
learning?
 I learnt about the concept of stakeholder and the different stakeholder groups.
 Importance of practising and CSR.
 Part of stakeholders in corporate social responsibility.
I would like to work for an organisation that practices CSR and is concerned about the welfare
of the different communities as well as the society on the whole.
2. Identify the skills and knowledge that you feel you will gain by taking this module and
how do you think it will be helpful for you in your studies as well as future career.
By undertaking the respective module, I will gain knowledge about the different stakeholder
groups in an organisation and their impact on CSR. This would not only be helpful during my
studies, but also in my future career plans. This is because I will develop certain skills and apply
them in practice situations.
Week 4
1. Identify and provide an explanation about three points from today’s discussion of the
interview with the General Manager of Uber regarding the engagement and motivation
of Uber drivers.
 The company is planning on adopting various other CSR activities apart from offering
ride sharing.
 The management of the company has decided to implement training programs in order
to motivate the drivers.
 The manager said that the company is planning to keep its different stakeholders
informed of the activities as well as decisions.
11

2 Of the books that you took into account today, explain which books you would
recommend to a friend who is studying the same course and explain why.
Of all the books I took referred, I would recommend my friend to study “Organisational
Behaviour” by Fiona M. Wilson because the topics are explained in a clear and easy to
understand language which is not confusing, but simple. Also, relevant examples have been
used so as to facilitate a better knowledge gaining.
Week 5
1. By reading the given case study ‘Through the Keyhole’ and a discussion with other
students, identify five main issues that the author has described and three areas that can
be applied to analyse the identified issues.
The author of the case study describes the importance of involving stakeholders in the overall
decision making process as well as their different types. The different areas that can be applied
these issues include practising corporate social responsibility. This is because it will in making
sure that the objectives are achieved in an enhanced manner.
2 Provide four main pieces of advice that you would offer a first year student about how to
approach case studies and analyse them?
First of all, it is important to read the case study thoroughly in order to understand the case that
it is trying to explain. Apart from this, it is also important to highlight any important points that
can be referred to later. Lastly, the key issue should be identified and recommendations about
the best course of action should be given.
Week 6
1. In your own words, explain about the following: organisational citizenship,tacit
knowledge and emotional labour.
Organisational citizenship is basically concerned with the actions as well as behaviours of
workers within an organisation that are not required. Whereas emotional labour is referred to as
the process of managing the feelings as well as expressions so as to fulfil the emotional
12