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PublicPrison Corporation Management

Stakeholdertheory addresses the moral and ethical practice of management withregard to its relationship to stakeholders. The theory focuses on whoand what role they play in the organization, and how to manage theirinterests. The stakeholders are the owners as well as other playersin the business such as employees, competitors and governmentagencies. The most effective management practice involves, value-based decision making. This means that the management makes decisionsbased on moral values and ethics, as part of corporate socialresponsibility. The values and ethical standards are influenced bythe organization’s culture. Managing for stakeholders involvescreating value for stakeholders. This paper shall discuss stakeholderanalysis for Private Prison Corporation of America.

ThePPA is responsible for offering probation facilities for prisoners,especially illegal immigrants, in conjunction with the federalgovernment. The corporation offers these services through highstandards, tight accountability, strong oversight, and stringentguidelines of government partners. The corporation is run using theprinciples of business management by introducing technologicalmanagement and cost saving measures. The company manages its ownfacilities and facilities owned by federal governments by usingefficient management practices that are meant to create value forstakeholders and reduce costs (Jutterstrom&amp Peter, 158).In managing the prisons, the company uses meta- ethics as a guide onhow to conduct their activities. In meta- ethics, the role of thecompany is to do the right thing regardless of the cost.

Themain stakeholders in the business are the government, employees,prisoners, the general public, financiers and communities. These areof different importance in the business and they all benefit from theefficient management at different levels (Urbany,Reynolds &amp Philips, 1). The government is responsible for ensuring that prisoners are heldin proper facilities that observe human rights as well as prevent theprisoners form interacting with the public for security purposes. Thegovernment also has the responsibility of ensuring that those whobreak the law are held in correctional facilities for purposes ofbehavior correction. The government is the largest stakeholder as itis in charge of security matters in the country.

Theemployees are in charge of implementing management decisions so as toachieve organizational goals and objectives. The employees are thus,directly involved in implementing decisions so as to achieve valuefor stakeholders on behalf of management. The employees do this byobserving ethical standards and values that are designed by themanagement and the government. The prisoners are the business of thecorporation. These are the people held in the correctional facilitiesso that they receive correctional services that are designed by thegovernment. The government designs these services depending on thecorrectional needs of the prisoners. This means that the corporationis not merely interested in making profits, but also adding value tothe prisoners through correctional services (Donaldson,88).

Thepublic also plays a role in the management of the corporation. Thisis because the payments made by the government to the facilities arefrom public funds. The public is also a stakeholder as they directlybenefit from the as a result of the prisoners being put away. Theresponsibility of the management to the public is in ensuring thatthe prisoners receive correctional services and the value added tothe prisoners surpasses the need for interest (Donaldson,41).The financiers are those who have bought shares into the companythrough the NASDAQ. The company is a listed company that trades inthe NASDAQ. The shareholders have bought shares directly into thecompany. The management has the responsibility of adding value tothis investment by generating profits. However, profit generationshould not surpass the need for value addition.

PublicPrisoners Corporation is a social utility business. The company isresponsible for providing social services to the stakeholders andthis means that the core business is to offer quality social servicesas opposed to profit making. The management is responsible forspending money and offering leadership skills is providing socialservices to all the stakeholders (Urbany,Reynolds &amp Philips, 3).The prisoners are the most important stakeholders in the business,followed by the shareholders. These are the direct beneficiaries ofthe business in terms of services and profits. In deciding the kindof services that are of importance to the prisoners, the company usesnormative ethics where it decides the extent of prisoners rightsbased on the basic human rights that prisoners are entitled to.

Thegovernment is the most powerful stakeholder as it is theresponsibility of the government to come up with legal frameworksthat define prisoners. The government also pays directly to theorganization for the services offered to the prisoners. Thegovernment is a representative of the citizens. The shareholders arethe next most powerful stakeholders. The shareholders offer financialinvestment in the organization and this is capital to the business(Frederickson&amp Richard, 112).The role of management is to offer services that improve thefinancial investment of the shareholders. This makes the shareholdersvery powerful as they can influence management decision, based onperformance.

Theemployees are also important stakeholders. This is because theemployees play an important role in implementation of managementdecisions so as to achieve the set goals and objectives. Theemployees hold the power of the success of the organization as theyare the ones who demonstrate the organization’s culture in how theyimplement the decisions made (Friedman,2).The means of implementation represent the values that the managementholds as being important. The employees embody the values of PrivatePrisoners Corporation and they are instrumental in the achievement ofgoals and objectives. The prisoners are the business and thus,important stakeholders because they are the reason for the existenceof the business. The prisoners must thus, be well managed forpurposes of success. The general public is important as it isresponsible for designing societal norms and values that determiningright from wrong.

Theorganization is firstly legally responsible for ensuring that theprisoners stay in the prisons and receive the necessary correctionalservices. This is a legal requirement that ensures that the prisonersstay in correctional facilities for the required time. While inprison, the prisoners ought to receive correctional services thatensure that they correct their behavior. This is a legal contractbetween the between Private Prisoners Corporation and all thestakeholders. It is the legal responsibility of the company to ensurethat the prisoners are kept away and receive correctional services.This is the core business of the organization and it ought to beplaced before the need to make profits (Urbany,Reynolds &amp Philips, 2).

Theorganization has an economic responsibility of ensuring that itcreates value for money invested by shareholders. This is done byensuring the shareholders receive maximum profits while also ensuringthat the organization maintains high values and ethics in itsconduct. The shareholders are the most important stakeholders and itis the responsibility of the management to align the organization’sgoals and objectives with those of the shareholders so as to ensurethat they get the maximum value. The organization also has aresponsibility towards the government and the public of ensuring thatthey get value for the money paid by offering quality services(Jutterstrom&amp Peter, 158).The management must also ensure that it pays employees on time andoffers them competitive salaries for services provided.

Themost effective action of the organization is in ensuring that theorganization offers suitable solutions to security problems. This canbe done through effective correctional services that facilitate quickrehabilitation and services that do not involve having the inmates inprison. The organization can offer correction facilities for thosewho break the law through services that monitor the behavior of lawbreakers while outside the jail. This will go a long way indecongesting the prisons and ensuring efficiency. This is thecrowding of prison facilities compromise the quality of servicesoffered.

Underthe proposed law of allowing police officers to arrest suspectedillegal immigrants and put them up in prison, the corporation shouldoppose the law as it will compromise on the capacity of the existingfacilities, causing congestion. This will also compromise the qualityof services offered. It is against good management practices andvalues to offer low quality services for purpose of profit making(Friedman,3).This compromises on the organization’s integrity and values as theservices offered by the organization are based of delivery of qualityservices before making profits. The best action for Freeman would beto reject the proposed law as it would congest the existing prisonfacilities. In deciding to reject the law, he would use descriptiveethics by considering the available facilities and comparing themwith the prisoner capacity.

Theintensive probation act ought to be passed so s to ensure that thosewho continue to engage in drug trade after parole stay out of jail.This is because the purpose of parole is to ensure that the prisonsare not crowded by keeping those who undergo successfulrehabilitation, out of jail. The organization should support this lawas it is meant to protect stakeholders from being affected by drugtrade. This is because the purpose of prison is to keep those whobreak the law away from the public. Freedman ought to use appliedethics to support the law as it is the role of prisons to keep thepublic safe by removing wrong doers from society.

Inconclusion, Private Prisoners Corporation is a system of prisons thatbrings together private investors and the government in the businessof establishing and managing prisons. The purpose is to introducegood management practices in prisons management. The services offeredserve different stakeholders among them the government, shareholders,prisoners, the public, and employees. The management has the purposeof ensuring that it adds value to the stakeholders by performing theduties efficiently, through an effective ethical culture of puttingvalue ahead of profits.


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