Management of Stakeholder Interests

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A stakeholder is an individual or a group of individuals that have an interest in certain business operations. A primary stakeholder is an individual or a group of individuals that have a direct influence on the organization (investors, employees, customers). A secondary stakeholder is not essential for the company’s survival but still influences the organizational outcomes to a certain extent (the media, communities, supporting organizations). Public stakeholders are represented by groups of individuals that are responsible for achieving the objective of serving the public (these might include philanthropic activity or any similar events). Stakeholder management is a unique approach to relationships with individuals and groups that have either a direct or an indirect impact on the organization.

The main issue presented in the case is the relationship between Disney and SunCal. The list of relevant stakeholders includes Disney employees and local unemployed people. SunCal’s proposed development is opposed by Disney’s management that wanted to deploy new attractions for tourists in the area where SunCal expected to build new houses. As stakeholders of the business, local communities should support SunCal and explain the need for more living houses in the area. The interaction between the business and society contributes to the conflict of interests that relates to the inability to find a job and yet have access to affordable housing at the same time.

The ethical dilemma here is that Disney does not want to give up on its potential land while realizing that future employees would have to live somewhere near the workplace, making it reasonable to invest in SunCal’s activity first. In order to manage various stakeholders’ interests, Disney would have to communicate its objectives relentlessly while also listening to the feedback coming from the local community. The dialogue between SunCal and its stakeholders should revolve around the possibility of creating more job opportunities for local residents in order to help new possible solutions emerge. The idea of shared value could become a perfect foundation for Disney and SunCal because social problems should be tackled with the help of ethical decisions and not mere capitalism.