Strategic Stakeholder Management: Inter Pipeline Ltd.
Strategic Stakeholder Management
A stakeholder is any individual, group, or organization that has an interest or concern or may be impacted as a result of an organization’s activities, objectives, policies, or products. Strong relationships between an organization and its stakeholders are critical to a company’s success. To effectively manage stakeholder relationships, an organization must understand the nature and composition of its stakeholder community and how stakeholder power and interest levels can influence strategy decisions and ultimately business outcomes.
This paper will investigate the organizational structure and stakeholder management practices of Inter Pipeline Ltd. It will include a summary describing how the company is organized …show more content…
has a Spending Authorization Matrix (SAM) in which each employee has a number that limits their spending approvals. For example, a front-line staff member has a level one, while the CEO has a level six. Level one will only have authorization to sign off on small costs. Meanwhile, level six has authorization to sign off on everything.
Decision making authority is filtered down through the organizational ranks. For example, the CEO may make decisions based on a new acquisition decision presented by the lead Vice Presidents.
Continuing with the above example, the Vice President who could not make the acquisition decision may have authorization to make other decisions based on their own functional area. For example, the Vice President may decide to hire three more staff to undertake a large Accounting project. Three ways that Inter Pipeline’s organizational structure supports its strategic objectives of increasing market share, strengthening its financial resources, and increasing productivity:
Since big decisions are to be made by the CEO, the increased market share objective is always being considered with utmost importance. The CEO is expected to make big-picture decisions which result in the best decision for the company as a whole, rather than for one specific business …show more content…
For example, if an Accounting Supervisor decides that a new Excel spreadsheet will be a more efficient way of creating a recurring journal entry, that Supervisor has the authority to make that decision and better the productivity of the team. Two theories that define the responsibility of a business to its constituents are:
Stakeholder theory, according to Audiopedia (2014), is a theory of ‘organizational management and business ethics that addresses morals and values in managing an organization.’ It identifies the groups of stakeholders and recommends methods of how management can give regard to the interests of those groups. It argues that all stakeholders should be considered (employees, customers, suppliers, financiers, communities, governments, political groups, trade associations, competitors).
Shareholder theory, according to Pfarrer (2010), is a theory that the shareholders/owners of the company are most important. It has the company putting those needs first to increase value for them. The theory that most closely aligns with Inter Pipeline Ltd.’s stakeholder management approach is Stakeholder
A stakeholder is any individual, group, or organization that has an interest or concern or may be impacted as a result of an organization’s activities, objectives, policies, or products. Strong relationships between an organization and its stakeholders are critical to a company’s success. To effectively manage stakeholder relationships, an organization must understand the nature and composition of its stakeholder community and how stakeholder power and interest levels can influence strategy decisions and ultimately business outcomes.
This paper will investigate the organizational structure and stakeholder management practices of Inter Pipeline Ltd. It will include a summary describing how the company is organized …show more content…
has a Spending Authorization Matrix (SAM) in which each employee has a number that limits their spending approvals. For example, a front-line staff member has a level one, while the CEO has a level six. Level one will only have authorization to sign off on small costs. Meanwhile, level six has authorization to sign off on everything.
Decision making authority is filtered down through the organizational ranks. For example, the CEO may make decisions based on a new acquisition decision presented by the lead Vice Presidents.
Continuing with the above example, the Vice President who could not make the acquisition decision may have authorization to make other decisions based on their own functional area. For example, the Vice President may decide to hire three more staff to undertake a large Accounting project. Three ways that Inter Pipeline’s organizational structure supports its strategic objectives of increasing market share, strengthening its financial resources, and increasing productivity:
Since big decisions are to be made by the CEO, the increased market share objective is always being considered with utmost importance. The CEO is expected to make big-picture decisions which result in the best decision for the company as a whole, rather than for one specific business …show more content…
For example, if an Accounting Supervisor decides that a new Excel spreadsheet will be a more efficient way of creating a recurring journal entry, that Supervisor has the authority to make that decision and better the productivity of the team. Two theories that define the responsibility of a business to its constituents are:
Stakeholder theory, according to Audiopedia (2014), is a theory of ‘organizational management and business ethics that addresses morals and values in managing an organization.’ It identifies the groups of stakeholders and recommends methods of how management can give regard to the interests of those groups. It argues that all stakeholders should be considered (employees, customers, suppliers, financiers, communities, governments, political groups, trade associations, competitors).
Shareholder theory, according to Pfarrer (2010), is a theory that the shareholders/owners of the company are most important. It has the company putting those needs first to increase value for them. The theory that most closely aligns with Inter Pipeline Ltd.’s stakeholder management approach is Stakeholder