Impact of Stakeholders' Analysis on Organizational Performance

Abstract

Businesses have grown to the realization that no individual sector can make a significant, sustainable difference alone. Also, several studies have indicated the extensive use of stakeholder analysis within most organizations to improve their businesses. However, this depends on how well organizations can align and fulfill the needs of most if not all stakeholder concerns. This paper is based on a comparative case study of two organizations in the Nigeria financial sector in relation to their stakeholder management practices. The aim is to study the impact of stakeholder analysis on the performance of these selected organizations. The stakeholders of each organization were identified based on their respective mission and vision statements, including their core values and how their stakeholder management practices have impacted on each of their financials and social performances were also examined. The study confirms the importance of stakeholder analysis in the improvement of organization performance and also asserts that the achievement of an organization's set objectives is dependent on how well the organization can represent the interest of its key stakeholders. It was thus concluded that if an organization can align and fulfill the needs of all its stakeholders successfully, its performance can be improved significantly. It is recommended that management of organizations should not only ensure that their business activities are committed to addressing their stakeholder concerns and needs effectively, but must also be committed to the long-term survival of the organizational goals.