Cálculo de la Capacidad de Carga Turística

The idea that businesses have stakeholders has now become commonplace in the management literature, both academic and professional (Crane et al., 2008:139). A company’s success can be affected – negatively or positively – by its stakeholders. Failure to respond to stakeholder concerns can lead to conflicts and serious public interest issues (Frederick et al., 1992:3). Many academics and writers, among them

Pedersen (2006), Branco and Rodrigues (2007) and Figar and Figar (2011) subscribe to the stakeholder theory.

The notion that the stakeholder theory is one of the basic foundations of BSR means stakeholders are important players in the activities of business. This section, therefore, will explore the stakeholder theory by examining who the stakeholders are and their influence on business. If business owners/managers, and especially small business owners/managers, are to efficiently and effectively engage in BSR activities, then insight into stakeholder theory is imperative.

In the traditional view of the firm, the shareholders (stockholders) are the owners of the business/company, and the firm has a binding duty to put their needs first, thus to increase value for them. In older input-output models, the inputs of investors, employees and suppliers are converted into usable outputs which customers buy, thereby returning some capital benefit to the business.

The conventional input-output perspective is shown in Figure 3.1 below. According to this model, input-output firms are primarily economically driven, only addressing the needs of investors (although it recognises the role that employees, suppliers and customers play in generating revenue for owners).

Figure 3.1: The input-output model of the Firm.

(Source: Crane et al. 2008:143)

However, the stakeholder theory advocates argue that besides the four parties in the conventional input-output model (investors, employees, suppliers and customers), there are other parties involved including government bodies, political groups, trade unions and communities. Besides this, everyone needs to benefit economically from the revenue generated. The stakeholder model is shown in Figure 3.2. This view is reiterated by Crane et al. (2008:142) that all persons or groups with legitimate interests participating in an enterprise do so to obtain benefits and that there is no prima facie priority of one set of interests and benefits over another. Hence, the arrows between the firm and its stakeholder constituents run in both directions.

Figure 3.2: The stakeholder model of the Firm

(Source: Crane et al. 2008:143)

In the two models above, the input-output model is generally economically inclined, whereas the stakeholder model is socially inclined. Consequently, two opposing perspectives of the firm are seen: economic versus stakeholder. Brown et al. (2001) argue that these seemingly opposing views are actually complementary, a view reiterated by Dzansi and Pretorius (2009:250).

Frederick et al. (1992:7-12) state that when business interacts so often and so closely with society, a shared interest and interdependence develops. When this occurs, stakeholders are created. They are also of the view that it is sometimes useful to

differentiate between stakeholders as either primary stakeholders or secondary stakeholders.

According to these authors, stakeholders are all the groups affected by a corporation’s decisions, policies, and operations. Primary and Secondary Stakeholders: A business’ primary involvement with society includes all the direct relationship necessary for it to perform its major mission of producing goods and services for society. These primary interactions are usually conducted through the open market. In other words, a business buys employees’ time and skills, buys supplies, borrows capital, and sells products to customers in competition with other firms. The free market system is the main way in which business interacts with society. Thus a firm’s primary involvements reflect its strategy, the policy decisions of its managers, and the stakeholders who are critical to its existence.

Figure 3.3: The interactions between business and its primary stakeholders.

Source (Frederick et al., 1992:10).

These market-driven customers, suppliers, employees and investors are a business’

primary stakeholders. Figure 3.3 shows the relations between a business and its primary stakeholders.

However, as Figure 3.4 reveals, a business’ relationships go beyond those primary involvements to others in society. Another level of interaction occurs when other groups express an interest or concern in the organization’s activities. A business’ secondary involvements are the result of the impacts caused by the company’s primary mission or function. Those groups in society who are affected, directly or indirectly, by the company’s secondary impacts and involvements are known as its secondary stakeholders.

Figure 3.4: The relations between a business and its secondary stakeholders.

Source (Frederick et al., 1992:12).

The discussion on the stakeholder theory can thus be summarised as:

• Stakeholders are persons or groups with legitimate interests in procedural and/or substantive aspects of the firm and who are identified by their interest in the firm (Dzansi, 2004:73);

• Stakeholder theory is a theory of organizational management and business ethics; • Stakeholder theory addresses morality in managing an organization;

• Stakeholder theory recommends methods through which management can give due regards to the interest of all stakeholders;

• Ultimately, normative assertions lend support to the idea that the stakeholder theory contributes to successful economic performance of a firm. Therefore, the contention that businesses practicing stakeholder management will, other things being equal, be relatively successful in conventional terms (profitability, stability, growth, etc.) is justified (Dzansi, 2004:74).

It is apparent from the above discussion that business owners/managers must operate ethically in response to stakeholders if their businesses are to survive.