Stakeholders Relation
Deetz ( 1996) in his journal Describing differences in approaches
organization science explains that organization is not merely
the reflection of the structure , role and function in the society. He
put the definition based on critical point of view that
organization “…..as social
historical accomoplished in conditions of struggle and domination, adomination that often hides and suppresses meaningful conflict.’(1996:222). Deetz emphasize his explanation that the organizational
research in critical point of view is to demonstrate and critique forms
of domination,asymmetry, and distorted communication through showing how
social constructions of reality can favor interest and alternate
construction of reality could be obscures and misrecognized. Deetz put
his idea as „therapeutic tone‟ since he is considered that the critique
appear based on the critical research will expose a fresh idea to
enhance the better condition of the society. Deetz focused his theory on
both internal and external relation of the could be categorized
companies. The external relation would be categorized into corporate
colonization, rationalization of society, and the domination of public
sphere. Deetz strong ideas about companies nowadays are the
multinational corporation is the dominant force in the society and
corporation control also diminished the quality of life for most
citizens. By observing those things, Deetz propose some crucial question
in relation with the corporate prosperity. He believes that the
companies nowadays must built and deliver the meaning and values.
The understanding of the stakeholder relation is initiated by Stanley
Deetz via Griffin ( 2011 :273) that every forms of stakeholder relation
between the company and the stakeholders, both internal and external,
should have the concept of democracy basis both in delivering the
opinion and in the decision making process. According to Deetz , the
role of the stakeholders are highly important to preserve the existence
of the company. The opinion and the involvement of stakeholders in
decision making are giving the significant element in building the
reputation and company sustainability. Deetz explained that the usage of
language in building the relationship become the significant medium to
understand and conduct the moderation between the company and
stakeholders. The usage of language is highly recommended to explain the
vision and mission of the company in order to persuade the stakeholders
to have the same vision and mission as the company. By understanding the
vision and mission of the company, based on Deetz, the stakeholders will
have the sense of belonging toward the company, so it would not give the
company a significant obstacle in inviting the stakeholders to
participate in the company cycle process. Deetz put opposite point of
view from his predecessor that the companies nowadays are significant to
transform their role as the informative agent become the communicative
agent. The companies nowadays should be able to maintain communication
between its stakeholders. Companies should be able to build the
effective method in delivering information in a communicative method and
medium. The transformation of mind set and communication strategies
shown as the picture below:
( Griffin,2011 :275)
The picture above depicts the demanded ability of a company to transform
their method of communication from informative to communicative. By
conducting the communicative method would produce the significant effect
to the stakeholder, the appreciation and sense of belonging from the
stakeholders. The initiating bond between companies and stakeholder will
encourage the involvement of stakeholders in decision making process and
furthermore on the sharing responsibilities. Deetz via Griffin
(2011:280) divided stakeholders based on their rights in decision making
and participation to the companies based on some categories as follow:
- Stakeholders who have divergent interests, not set positions.
- Stakeholders who possess roughly the same level of communication
skill.
- Authority relationships and power positions are set aside.
- All stakeholders have an equal opportunity to express
themselves.
- Stakeholders’ wants are openly investigated in order to
determine their interests.
- Participants transparently share information and how decisions
are made.
- Facts and knowledge claims are revisited to see how they were
created.
- Focusing on outcomes and interests rather than bargaining on
rival solutions.
- Stakeholders jointly make decisions rather than just having
“their say”.
Further, Deetz (2011:282) suggested a communication model to maintain
communication to the stakeholders. He called the model as PARC
(Politically Attentive Relational Constructionims) that give the basis
method in conducting the communication with the stakeholders. PARC is a
negotiation model in which the stakeholders and companies could put
aside personal interest to gain the communal goal that will give
benefits to every parties. The other role of PARC is to repress the
raising up of the conflict and frictions during the decision making. To
apply thi0s model in companies life cycle, Deetz suggested that the
usage of language becoming the prior tools to gain the attention and
whole participation from the stakeholders. Deetz mentioned it as the
relational constructionism in which language as the primary medium to
deliver the important values of the company. The constructive language
will help the companies to gain the stakeholders understanding related
to the vision and mission as well as the values in the companies. In
addition, Deetz tried to emphasize that this model will help the
companies maintain the communication toward the stakeholders easier in
the future. In case there is any problem might appear in the future, the
companies would not find major difficulties in initiating discussion
with the stakeholders. Further, Deets explained by gaining the values
understanding for both sides, companies and stakeholder will increase
the sustainability of the companies itself.
The second theory explained by Deetz related to the managerial system in
the company. Deetz presented his point of view that within the society,
the basic problem is not located on the manager as an individual but
more on the managerialism in the company. Deetz considers thatmanagerialism is a discourse of “A systematic logic, set
of routine practices, and ideology that values control all other
concerns.” ( Griffin, 2011:276). Deetz believes that the basic
function of the mangerialism is control system towards the
variety of the interest among the stakeholders. In addition, the concept
of control itself is closely related with the concept of stakeholders‟
involvement in delivering ideas. Further,Deetz claimed his theory as a
democratic organizational theory that could strive the organization into
better transformation. He claimed his democracy values derived from
Jeffersonian democracy that basis on 3 notions of the communication,
those are:
- Freedom of speech guaranteed equitable participation in decision
making.
- Persuasion and advocacy were the best ways to reach a good
decision.
- Autonomous individuals could then make up their own minds. (
Griffin: 277)
Deetz proposed those 3 notions of communication as the
transformational mind set for the 20th century‟s
companies that has to deal with the pluralistic, physically and
psychologically. The 20th centuries companies deal
with the emerging of the right to express the ideas and opinion within
and outside the companies. The major concern of nowadays companies is
the ability of the companies itself to provide the forum for all the
stakeholders. By providing the forum and the chances to collaborate,
the companies show its goodwill as a sustainable companies.
Suistainability as orientation business for People, Planet and
ProfitSocial and environmental issues are more important than ever. For
business, they represent some of the greatest opportunities to find new
markets of profitable growth, more lasting and engaging sources of
competitive advantage, and more effective ways to reduce cost and risk.
Consumers no longer feel conflicted by the issues, but are committed to
supporting change. Doing good is no longer about sackcloth and
frugality, it can feel and taste good too. According Fisk ( 2010, 4)
realize that it is no longer a nice-to-have, but a must-do. We realize
that it is no longer a peripheral activity but fundamental to every
aspect of how we do business, every day, for everyone.
People, Planet, Profit is about business opportunity, operational
improvement and competitive advantage. It is a practical handbook for
CEOs and business managers who are searching for new ways to create
value, to make sense of business in a rapidly shifting landscape, to
deliver profitable growth whilst also doing ‘the right thing’