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:
  1. Stakeholders who have divergent interests, not set positions.
  2. Stakeholders who possess roughly the same level of communication skill.
  3. Authority relationships and power positions are set aside.
  4. All stakeholders have an equal opportunity to express themselves.
  5. Stakeholders’ wants are openly investigated in order to determine their interests.
  6. Participants transparently share information and how decisions are made.
  7. Facts and knowledge claims are revisited to see how they were created.
  8. Focusing on outcomes and interests rather than bargaining on rival solutions.
  9. 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:
  1. Freedom of speech guaranteed equitable participation in decision making.
  2. Persuasion and advocacy were the best ways to reach a good decision.
  3. 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’