Stakeholder theory focusses on the relationship between a firm and others within the interior and external environment. The main emphasis is on how the acquaintances effects business doing things. Though, it is significant to note that stakeholders can either be from outside or privileged the creativity. Some of the examples of involved gatherings in a business include; stockholders, suppliers, employees, customers, government, non-profit groups as well as local community. According to stakeholder theory, a firm is as well made of other parties such as political groups, governmental bodies, trade unions, trade associations, financiers, communities, suppliers, employees as well as customers.
The first problem would be that there would be a conquest of jobs in one way or the other. It means that definite actions will be concentrated within the country and much be intensive on the new country. Also, they will not carry the whole workforce to the new country. The company will have rearrangement of its activities that had the meanings of sustaining the domestic demand.
All the same, it brings about a positive impact to the employees since it is mainly meant to improve production to the home country (Ebenstein et al., 2014). There is also another influence according to a study directed newly that shows that there has been increasing of wage unfairness that has affected between the trained and untrained workers. Similarly, there is demand for skilled labor.
The local markets, as well as aground states, will advantage from the resources made by the company. It is, consequently, important to reminder such investments are significant to the country.
Some few years back, the state invested in such markets so as to obtain raw materials. Nowadays, like in the case of our company the main goal is to make products that they then ship back to America (Ebenstein et al., 2014). The issue, however, has some consequences to the society. Accordingly, the American societies will have their jobs demolished. The issue seems to hollow the manufacturing base of the nation and at the same time threatens the standard of living among communities. The customer provider may be providing with insufficient customer summaries and histories since the company may like to shelter its customers. If that will be the case, then there will be no good connection between customers and the employees.
The stockholders will be in a situation to save money on provisions as well as labor through manufacturing exterior. Consistently, they will meet high costs on transportation expenses as well as prices. Stakeholders should note that it will take some time for them to get supplies from the offshore locations. Therefore, there is a slow reaction to market difficulties. Much might not be interchangeable in labor. It is reasonable to state that the main goal here is to abridge total manufacture cost. In fewer industrialized countries workers seem to be less dynamic than Americans. If they have a traditional judgment of wages, then there will be an incorrect reading of the potential savings.
In conclusion, Employees should know that the advantage about marketing does not last forever. The employers should confirm that there is job security among the employees. They should produce some more job opportunities to the current employees. Another thing that the employer should put into reflection is the issue of saving. In many occurrences, the company may end up misplacing rather than gaining (Ebenstein et al., 2014). Therefore, they should relate the least cost-effective marketing approaches.
Ebenstein, A., Harrison, A., McMillan, M., & Phillips, S. (2014). Estimating the impact of trade and offshoring on American workers using the current population surveys. Review of Economics and Statistics, 96(4), 581-595.
Minoja, M. (2012). Stakeholder management theory, firm strategy, and ambidexterity. Journal of Business Ethics, 109(1), 67-82.