Essay about Stakeholder Analysis

1350 Words Oct 28th, 2014 6 Pages
PRIVATE PRISON CORPORATION OF AMERICA Nowadays, we are facing a major experiment in privatization. For example, private companies have entered the business of managing public schools, or religious schools. Also, they even run in prison industry. Among them is Private Prison Corporation of America, which is growing fast in prison industry in the United States. Especially, immigration detention business has brought up massive profit for Private Prison of America. Therefore, corporation is planning to join other private prison corporations by making campaign donation and retaining lobbyist to draft and seek the passage of two laws about anti-illegal immigrant and the Intensive Probation Act that will increase opportunities to do …show more content…
Overall, there is more benefit than a loss if Corporation retain lobbyist. The second theory is applied to this case is Managing for Stakeholder by R. Edward Freeman. His thesis is about creating as much value as possible, keep them in balance for stakeholders, and make sure all of them go to the same direction. The primary stakeholders that are affected by a decision are suppliers, communities, employees, and financiers, and the secondary stakeholders include consumer advocate groups, competitors, government and media. The Financiers expect financial return from investing. They depend upon a number of inmates serving in prison. The Suppliers interest in proving health care program, technology, or construction materials for new facilities. Employees probably expect stable job, wage and benefit from corporation. The communities would wish to generate economic growth and job creation, yet it might bring the opposite result depending on the success of prison. Government expect private prison to bring more cost saving. In fact, in the model legislation, section 4, person enrolled in an intensive probation program will be required to pay restitution and probation fees of not less than $50 per month, and the safe neighborhoods Act grant the police more power. If the legislation enacted, most of stakeholders would get significant benefit. Thus, according the Freeman theory, I suggest the Private Prison Corporation should making campaign.

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