Free Essay: Exploring Critical Success Factors for Stakeholder Management

Summary

Stakeholders are a very vital individual in any organization setting. Stakeholders keep the business processes of a particular company running. Stakeholders, therefore, refer to the individuals or business players with a more significant impact on an organization's making profits, gaining competitive advantage and product lines. Stakeholders include employees, managers, department heads, and shareholders and investors who are profit-oriented to see their investments being beneficial. The oil and gas industry needs to create a healthy relationship with its stakeholders to attract investments from other businesses venturing into a related field. For a business venture, the managers must understand the trends and behavior of the stakeholder for proper policy development to meet the needs of those stakeholders in question. The paper, therefore, aims to critically assess the success factors that influence stakeholder relationships to attract investments in the oil and gas industry.

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Analysis

Many corporations are continuously engaging in various relationships with business stakeholders to attract new investors. The connections are, therefore, endless, and the companies are required to develop new policies to help keep their stakeholders for business continuity. Stakeholders help keep the business activities running in any organization, thus helping to attract investments. Satisfied stakeholders have positive feedback about the company and are likely to work with that company as long as their needs are met and feel appreciated. Keeping these relationships, therefore, is always a challenge to the company. Most stakeholders' needs continuously change with the change in the economic, social, and political conditions. Poor relationship management with stakeholders leads to lousy company reputation, thus low or lack of new investments. Investors tend to withdraw from a partnership with the company if they are losing instead of making profits.

The oil and gas industry stakeholders include government regulators, shareholders, contractors, and the end-users of petroleum products. When the industry builds and maintains a good relationship with these stakeholders, it will create a good reputation, thus attracting many investors. In recent years the oil and gas industry has realized that stakeholder management has increased profitability and improve the importance of the sector worldwide. Managing financial, social, and environmental factors influences the sustainability of the stakeholders in the industry, thus attracting new investors to the industry. Many successful companies that have become the best partners and provide better oil and gas deals with significant stakeholders are the ones who have kept good relationships with their stakeholders and build a strong reputation for their products.

Relevance

The paper purports to critically analyze the factors that affect the stakeholder relationship for the oil and gas industry to attract new investors to aid in business profitability. The analysis will help the oil and gas businesses and asp the investor who want to venture in business to understand what factors to put into consideration for better stakeholder management. The study will examine the trends involving stakeholder needs and business policies towards the increase in profits and investors' attraction.

References

Key To Successful Stakeholder Relationship Management In The Oil And Gas Industry. (2019, December 27). Retrieved from https://africaoilgasreport.com/2019/12/gas-monetization/key-to-successful-stakeholder-relationship-management-in-the-oil-and-gas-industry/

Love, E. G., & Kraatz, M. S. (2017). Failed Stakeholder Exchanges and Corporate Reputation: The Case of Earnings Misses. Academy of Management Journal, 60(3), 880-903.