Role of Stakeholder

Role of Stakeholder

According to Pearce and Robinson (2009), stakeholders are "influential people who are vitally interested in the actions of the business" (pg. 14). Stakeholders understand the success of the business depends on the quality of the products and services the customer receives. Quality management involves using a wide variety of techniques and tools to attain and retain satisfied customers through continuous improvement processes that lead to high-quality performance and products. Most of the time, quality management processes reap rewards as seen in successful and growing chains like Wal-Mart; however, not every system is successful as seen in the educational system's standardized testing.

Wal-Mart Management

Wal-Mart management understands the importance of stakeholders to the success of the business. Engaging in relationships with customers through civic organizations, non-profit groups, and community projects provides the management team with varying viewpoints that can be used when developing new initiatives, proving business practices, and managing conflict. Wal-Mart uses a Sustainable Value Network (SVN) forum to allow Associates, suppliers, community leaders, and academic experts to collaborate ideas, explore challenges, and constructive criticisms to develop solutions for challenges we are facing in the 21st century. This network has been instrumental in developing insights and innovative processes to create positive changes in the way Wal-Mart operates. Through the forum, Wal-Mart SVNs indicated an immediate need to focus on the environmental impact of the stores. The stakeholders collaboratively explored the problems and developed solutions to benefit not only Wal-Mart but also the local and global communities. Wal-Mart continues to build on the information they receive, holding employees accountable to maintain a long-term commitment to improving the communities they impact.

American Public School Educational System

As seen with the No Child Left Behind Act, "when measurement systems are tied to performance ratings and money, people begin to distort the results and the systems" (Foster, 2007, pg. 109). The law ultimately evaluates the performance of teachers and schools through the ability of the children to pass standardized tests. Unfortunately, not all systems are equal nor are the surroundings of all children. What is normal and appropriate for a group of students in Michigan is probably nonexistent to a group of children in Georgia. The stakeholders involved in education include the students, teachers, administrative staff, parents, government officials, civic leaders, and taxpayers