Identification and Role of Oxfam’s Stakeholders
The case study describes the journey Oxfam has taken to achieve the value of transparency and information accountability in an effort to restructure its reputation and achieve efficiency. Oxfam has many stakeholders with different functions, needs, and degrees of power (Fernando, 2023). First, there are the beneficiaries of services (“clients”) who receive humanitarian support and assistance from Oxfam, especially in times of disaster: their role is to receive service from the charity company directly.
Second, there are the funders (“financial communities”), who may be represented by individuals, organizations, or governments and whose funds help Oxfam to exist and carry out charitable activities (Wills, 2023). Third, there are volunteers (“activist groups” and “employees”) who are essential resources for Oxfam and help carry out on-site work practices. Fourth, governments can also be considered stakeholders because they benefit from the work of charities and regulate their activities, for example, by banning them, as was done by the Haitian authorities.
Fifth, there is the management apparatus (“owners/shareholders” and “managers”) represented by the board of supervisors, who carry out the overall management of the company, and the executive board, which carries out strategic planning and decision-making. Like any company, Oxfam has competitors in the charity industry, and among those named in the case are the “Medecins sans Frontières”: their role is to compete for market niches and improve the overall performance of charities.
Seventh, the implementation of humanitarian support to those in need may require the creation of supply chains and direct deliveries of products, which involves other stakeholders, “trade associations,” and “suppliers,” whose role is to ensure the continuity of products. Eighth, the general public (“political groups”) can also be seen as a stakeholder, especially in light of political criticism of the immoral actions of Oxfam employees: their role is to express criticism or loyalty to Oxfam in order to support or oppose it. Finally, Oxfam’s organizational structure consists of 19 charitable confederations (“Unions”), each with different needs due to regional and political differences, whose role is to fulfill regional charitable objectives. Thus, Oxfam has all the types of stakeholders identified in Figure 5.2 (Whittington et al., 2020).
Stakeholder Engagement in the Power/Attention Matrix
The power/attention matrix is presented in Figure 5.3. divides the plane into two axes (“attention level” and “power level”), which creates four cohorts of stakeholders (Whittington et al., 2020). The matrix constructed from the case study is shown in Figure 1. Suppliers and trade associations have the least power and attention because, first, Oxfam can choose other suppliers in case of conflicts and does not feel much pressure from them, and second, suppliers have many customers and are not particularly attentive to Oxfam. Increased power corresponds to an excellent opportunity to influence decisions at Oxfam, while low levels of attention show low levels of attention to company operations (Whittington et al., 2020).
In this cohort are competitors who are more focused on their operations but can influence Oxfam through their own transformations and improvements, as well as sponsors who fund company operations but may only see it as another investment or reputational project (Na, Kang, and Jeong, 2019). In the zone of greater attention and lower power are beneficiaries and volunteers: both stakeholders have exceptional attention to Oxfam as a charity and employer, respectively, but cannot influence decisions made at the company.
Finally, several stakeholder groups have more power and attention. States can directly regulate Oxfam in their territories and have high regard for what exactly a foreign company does. Governments and individual confederations (“Unions”) aimed at improving efficiency have a direct influence on decisions and have a high degree of attention to the company since any action leads to reactions. In the same cohort, social and political formations should be included, which, through criticism or support, can stimulate specific decisions. The focus of their attention should be on company activities that help people but can also harm them, as shown by the case study.
Adapting the Corporate Governance Chain to Oxfam GB
Figure 2 shows the adapted chain of administration in Oxfam GB. This chain directly connects beneficiaries, who are the end users of Oxfam’s services, with sponsors, who are the company’s primary financial sources and are represented by governments, private investors, and organizations. Beneficiaries do not have direct interaction with sponsors but are linked to them through multiple layers (Whittington et al., 2020). Thus, beneficiaries exchange requests for support with volunteers, who are the “face of the company,” and receive services.
Volunteers work with providers who provide the flow of food, humanitarian aid, and other support measures that the population group requires. Providers are connected to the management with whom they collaborate to perform their functions and to whom they are accountable for their commitments (Schlueter, 2020). The management, in turn, is fully accountable to the executive management of Oxfam GB. Finally, the executive management office reports to the sponsors on its performance and shares annual reports. Sponsors and investors thus support beneficiaries through a system of multiple levels.
Reference List
Fernando, J. (2023). What are stakeholders: Definition, types, and examples. Web.
Na, Y.K., Kang, S., and Jeong, H.Y. (2019) The effect of market orientation on performance of sharing economy business: focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), pp. 729-748.
Schlueter, A. M. (2020) Put accountability into your supplier partnerships. LinkedIn. Web.
Whittington, R., et al. (2020) Exploring strategy (twelfth edition). Harlow: Pearson.
Wills, A. (2023) Where to find funding for nonprofit organizations. Web.