The Nexus Between Organization and Its Environment, Using a Stakeholder’s Approach to Business Organization: A Theoretical Perspective

Abstract

Organization effectiveness depends on the interaction with the environment. No organization can isolate itself from the environment because it forms an integral part of the system. Implicitly it is a subsystem contributing to the efficiency and development of the environmental system. Aside from the fact that it is a subsystem, it will be disastrous to have an insignificant relationship between the organization and other elements in the entire environment. The success of any profitable and socially responsible organization is to create a favorable, friendly and successful relationship with the environment. This paper illuminates some of the stakeholders and the need to have a nexus between the organization and the stakeholders in order to achieve the stated objectives. Secondary method of collecting data which includes the use of journals and other related literature materials were used. Having clarified the need for nexus between the organization and its stakeholders using stakeholders approach, the researchers recommended that the study should be empirically tested. More so, the dynamism of the environment calls for the dynamic and ever progressive nature of the organization.
Key words: Organizations; Environment; Stakeholders; Business organizations