Stakeholders and the Stakeholder Theory
Stakeholders are “any group or individual/s who can affect or is affected by the realization of an organization or a firm’s objectives.” Stakeholders are categorized into two classes; primary and secondary stakeholders. The former categorization of stakeholders refers to those groups, individuals or organizations that or who continuously engage in the organization’s activities. The participation and involvement of primary stakeholders is vital for the survival of the organization. Primary stakeholders include organization’s employees, clients, shareholders, financiers, local community, the government and industry regulators. The later categorization of the stakeholders class refer to individuals, groups or institutions that affect or are affected, influence or are influenced by the organization. It is important to note that secondary stakeholders do not engage in transactions with the organization. Although secondary stakeholders are vital to an organization, their importance does not extend to the survival of the organization. Secondary stakeholders can be exemplified by media and interest groups (Tencati and Perrini, 2011). The Stakeholder Theory goes in tandem with the definition, understanding and conceptualization of stakeholders in the organization. According to Jamali (2008), the Stakeholder Theory offers a new way of organized thinking with regard to organizational responsibilities. This theory posits that the needs of shareholders cannot be met without satisfying to some extent the needs of other stakeholders. Thus, this theory traverses beyond the firm’s primary role of profit maximization.
This paper seeks to explore the stakeholders and the Stakeholders Theory in relation to the protection of patients’ records in the healthcare environment use of EMR. In the protection of patients records, three stakeholders have been identified; The Health Insurance Portability and Accountability Act (HIPAA), the hospitals’...