Stakeholder advocacy is the wielding of influence by interest persons in the decisions, executions, recommendations, and policy making of a company. While a stakeholder is a person involved in organization, holds responsibilities, and are interested in its success, they may own part of the organization hence becoming shareholders.
There are two types of stakeholder advocacy: primary and secondary stakeholder’s advocacies. Primary advocacy results from stakeholders whose interest is particularly important to the accomplishment and success of the company. This includes the customers and ends users of the project. Primary stakeholders also include senior management, project sponsors, and team in the organization they are internal stakeholders who engage in the firm’s transactions.
The Secondary stakeholder advocacy arises from members who help in the completion of the project this advocacy is carried by the administration, legal and financial consultant of the organization. Secondary stakeholders do not engage indirect transactions but are affected by the firm’s actions. They make the policies and monitor the execution of economic activities. They include the public media, business support groups, communities and activist groups.
Stakeholders preeminent role wield influence in many corporate responsibilities done by business. Their advocacy deals with executing the duties. Their influence is very crucial since they directly determine the success or failure of company sales. They ensure that the transactions are accurate and improved to increase sales. As employees, debtors, suppliers make decisions and contributions, and they take the risk in creating a successful organization. Further, this is evidenced by the additive and multiplicative policies made by stakeholders that have to adhere to. An example is their simultaneous address of customer’s witches as well as an employee and stakeholder interest, resulting in increased sales for both players. Through stakeholder influence, firm’s value is sought to be increase to maximize joint outcome.
Secondly, firms, which want to fulfill the needs and keep its company image for the sake of stakeholders, enables them to be careful to prevent loses in sales. The organization tries to keep afloat by giving back to the community in impacting and resourceful ways. CRS helps improve and the image of the company by the locals This is because stakeholders view is paramount ; hence firms embraced concepts to improve their image, reduce liability risks for corporate negligence this reduce the firms vulnerability to attacks from peer groups, NGOs, or campaigning groups. It is imperative that the stakeholder’s importance is immeasurable in firms, yet their responsibilities ensure that companies stay track in their running.