Lesson Two: Shaping the Sector

Stakeholders, overall influence the non-profit sector in various ways. The impact stakeholders have on this sector, can be minimal or impactful. For example, as discussed in class, the management team identifies and shapes the mission and goals. Staff can carry out strategic plans cascaded down from the leadership team. The roles of stakeholders, at times determine the success of an organization. Donors and constituents play a major role in the direction. Having funds to carry out the mission is important as well as having a population to serve.  The micro and macro system-wide influence mitigates and maximizes the operations of the organization.

There are several different pros and cons to many different forces shaping non-profits. Factoring many different forces can be difficult because the question of who has the upper hand or the responsibilities of each stakeholder can be challenging. It can also have a positive impact because certain donors may just believe in the mission and opt out of being on the board or having any say in the direction of operations. Vertical and horizontal stakeholders are important because they are most aware of the day to day functions and can pose key tools to best achieve the organization’s mission. Understanding a stakeholder’s interest and involvement can improve efficiency and effectiveness.

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