Answer to Question #212295 in Management for Rolin Simo

Question

Discuss the pros and cons/opportunities and challenges of involving external constituencies and stakeholders to the decision-making process in public management in your own country (make sure to mention the country you come from). Link your answer to good governance principles

Answer 1

Country: Kenya – East Africa

Pros

Experience in Business

Shareholders sitting in boards of public management companies bring a wealth of experience and help company into not making regrettable and expensive errors.

Risk Management

The shareholders will help the company in analyzing and mitigating potential risk factors that will affect public companies (Brandon et al, 2014).

 

Cons

Pursuing Individual Interest

The shareholders may pursue their own interests at the expense of the larger stakeholders.

Hindering Progress

When stakeholders are pursuing their own interests at the expense of the other stakeholders they will hinder progress in such an organization and derail it from achieving its full potential.

 

 

 

References

Brandon, P.R. and Fukunaga, L.L., 2014. The state of the empirical research literature on stakeholder involvement in program evaluation. American Journal of Evaluation, 35(1), pp.26-44.