Introduction to Management

Responsibility

Many stakeholders are impacted by the presence and action of any given organization. Which stakeholders take priority over others?
An organization and its management are formally responsible to a specific entity or persons. The organization and its members are also obligated to follow the law.
Government organizations are responsible to the bodies that authorized them. A national government and its leaders, if democratically elected, are responsible to voters. The voters may vote against them if they do not fulfill promises or meet expectations. Government entities and government officials must also follow the law.
Most government entities are departments that were commissioned by a higher government authority. For example, a school district is funded and authorized by the Department of Education. Managers of the school district, superintendents and other administrators, are responsible to the Department of Education. In some areas, they are also responsible to a locally elected school board. Regardless of this chain of command, the managers of a school district are also required to follow the laws of their country.
For-profit entities and their management answer to shareholders. These are people who own interest in the company. In many cases, shareholders elect a board of directors to oversee management. The formal goal of a manager is to increase the value of the shares of the company. However, profit must not come from breaking the law. Management and companies as a whole must follow the law. 
Non-governmental organizations have founders and donors. They have mission statements, and they must spend funds raised for a specific cause on that cause. Like many for-profit organizations, many NGOs have boards of directors which oversee management. The managers of NGOs are ultimately responsible to donors and directors who try to honor wishes of founders and past donors. In addition, NGOs and their management must abide by the law.
Ultimately, management has formal responsibility as well as legal limits.
Responsibility536Responsibility