Stakeholder’s theory plays an important role in the business ethics and management of the organization which is helpful to address the values and morals to manage the business organization. The stakeholder’s theory is used in the business to create value for the stakeholders not only for the shareholders of the business. In the stakeholders, the business needs to consider supplier, customers, employee, communities, shareholders and many more (Mason et al., 2007). In addition to this, stakeholders of the business need to consider the group of individual people which is affected by the overall achievement of the firm’s objectives.
On the other hand, this thing is widely accepted that the business needs to take more than shareholders and maximize profit with the help of shareholders theory. The stakeholder’s theory is used in the business to maintain their stakeholders which improves the stakeholder’s value. The company has various reasons besides the profit motive (Steurer et al., 2005). The stakeholder’s theory looks at the relationship between internal and external environment and the organization. Moreover, it also makes a connection which influences the conducted activities. without the help of stakeholder, an organization is not able to exist.
Major stakeholders of TCS
The major stakeholders of TCS include their customers, strategic partners, shareholders, employees, regulators and government and many more. The company provides effective service to their customers that will exceed the expectation level of their clients. Therefore, it will improve the value of clients for the IT service in public. Along with this, the company is effectively selecting and evaluating their partner that is efficiently benefited from their partnership. The shareholders of TCS are used to improving the value of the business according to the expectation of shareholders in their business (TCS, 2017). For their employee’s, TCS always work to avoid the discriminatory, job security to maintain the safe and healthy work environment for their employees who are working with TCS.
Along with this, the company makes the strong relationship with a harmonious and constructive relationship with the JSC that is helpful to maintain overall rules and regulation which is applicable to the business. TCS includes government as major stakeholders which makes a full compliance as per the requirements of the business, government rules and regulations. In the government stakeholders, TCS is connected with the city of Windhoek, Emfuleni local municipality and Namibian police (TCS, 2017). There are various technological partners of TCS which is Epay, Artemis, post office, Hyper Auto, FNB and many more. Along with this, the company is focusing on the right stakeholders which increase their value, excellence, individual respect, continuous sharing, and learning. The organization collaborates with various stakeholders which are working on the large global scale projects. Moreover, TCS provides a higher level of flexibility to their multiple stakeholders like customers, partners, government, and employee.
The organization focuses on the right stakeholders that will create a specific value proposition. The marketing of TCS can work as the differentiator in their business by which they will create a specific value proposition which is directly relevant to the stakeholders of the business. the effective management of the business will improve the relationship, integrity and maintain the judgment and behavior of an individual person. In the internal system of TCS, the organization focuses on the internal stakeholders which are helpful to connect and collaborate with the new employees in the business (Freeman et al., 2004). The company focuses on the right stakeholders and it will start a talent management process which is responsible to serve an effective platform for their staff member to connect with the employee of the business. Moreover, the company has a stakeholders relationship committee which is responsible to look towards the redressed of complaints of investors like share credit and annual report.
Theoretical framework to assess the organizational culture at Tata Consultancy Services (or TCS)
Culture can be defined as the sense of working that differentiates one organisation from another so as to provide a specific competitive advantage to the company. Every organisation has its own way of performing functions that ensure uniqueness in the business concept (Berce et. al., 2008). Culture is a sum of all the procedures, ethical values, beliefs, and principles that exist within the organisation. Moreover, the organisational culture manages the interaction, personality and behavior of the workforce during internal or external communication. Therefore, it has been regarded as an integral part of the business as it clearly specifies how the business functions must be undertaken within the organisation. A theoretical concept has been provided by Cameron & Quinn (2005) in the model “Competing Values Framework”, which has defined the organisation culture.
According to the framework of competing values, it indicates whether a business should focus upon the internal or external environment or subsequently deciding which process, i.e. flexibility and independence or control and stability. In this model, there are 4 types of cultures defined: clan, adhocracy, market and hierarchy (Lincoln, 2010). The clan is a type of accommodating place where individuals feel like a family and ensure shared communication. Adhocracy implies the creativity among the individuals who are active to participate and take risks. Market refers to the efficiency of the workforce through being high performer and focusing on outcomes. Hierarchy presents a formal structure of the organisation which is highly coordinated and bind with rules and regulations to achieve the organisational overall objective.