To an organization, building relationships with various external environments, in other
words, external stakeholders, is very important. The scene of business in recent couples of
year has shown that organizations must pay their attention to the stakeholder’s attributes
equally, it would cause them lots of trouble if they just focus on 1 attribute and ignore the
rest. This article will explain the stakeholder theory as well as its concept. Furthermore, this
article will critically analyse stakeholder’s negative and positive attributes, its effects to an
organisation. After that, a newspaper article will be introduced, it will be summarised and
moreover, the newspaper article’s content is about Vedan company and the scandal that
cause them damage, their scenario will be analysed to show how it relate to the article.
Finally, some recommendation will be given to improve the situation of Vedan that has been
stated in the newspaper’s article.
As mentioned in the introduction, stakeholders are very important to an organisation,
so who are they? First of all, a stakeholder can be simply defined as a person or a group that
are affected by an organisation’s decisions and actions (Managing for a sustainable future,
2014), stakeholders can come from inside or outside an organisation, it is known as external
stakeholders and internal stakeholders. Moreover, according to stakeholder theory by R.
Edward Freeman, his main idea on stakeholder theory is that an organizations that control
and have good relationship with their stakeholders are more likely to survive and operate
better than organizations that do not (Strategic Management: A Stakeholder Approach,
1984). A quick example of effect of a stakeholder, McDonald (an US brand) have recently
opened their food store in Vietnam, unfortunately, they are not doing very well, whereas
KFC, also an US brand, are doing fine. The reasons might be because McDonald do not
care about stakeholders’ value, specifically the customers attribute, they do not have food
