97 Copyright © Canadian Research & Development Center of Sciences and Cultures ISSN 1923-841X[Print] ISSN 1923-8428[Online] www.cscanada.net www.cscanada.org International Business and Management Vol. 4, No. 1, 2012, pp. 97-100 DOI:10.3968/j.ibm.1923842820120401.0145 The Nexus Between Organization and Its Environment, Using a Stakeholder’s Approach to Business Organization: A Theoretical Perspective IBOJO BOLANLE ODUNLAMI 1,* ; G.T OLAWEPO 2 1 Lecturer, Business Administration Department, Ajayi Crowther University, Oyo, Nigeria. 2 Lecturer, Business Administration Department, Ajayi Crowther University, Oyo, Nigeria. * Corresponding Author. Address: Business Administration Department, Faculty of Social and Management Sciences, Ajayi Crowther University, P.M.B 1066 Oyo, Oyo State Nigeria Email: odunibojo@yahoo.com Received 25 November 2011; Accepted 5 January 2012 Abstract Organization effectiveness depends on the interaction with the environment. No organization can isolate itself from the environment because it forms an integral part of the system. Implicitly it is a subsystem contributing to the efficiency and development of the environmental system. Aside from the fact that it is a subsystem, it will be disastrous to have an insignificant relationship between the organization and other elements in the entire environment. The success of any profitable and socially responsible organization is to create a favorable, friendly and successful relationship with the environment. This paper illuminates some of the stakeholders and the need to have a nexus between the organization and the stakeholders in order to achieve the stated objectives. Secondary method of collecting data which includes the use of journals and other related literature materials were used. Having clarified the need for nexus between the organization and its stakeholders using stakeholders approach, the researchers recommended that the study should be empirically tested. More so, the dynamism of the environment calls for the dynamic and ever progressive nature of the organization. Key words: Organizations; Environment; Stakeholders; Business organizations IBOJO BOLANLE ODUNLAMI, G.T OLAWEPO (2012). The Nexus Between Organization and Its Environment, Using a Stakeholder’s Approach to Business Organization: A Theoretical Perspective. International Business and Management, 4 (1), 97-100. Available from: URL: http://www.cscanada.net/ index.php/ibm/article/view/j.ibm.1923842820120401.0145 DOI: http://dx.doi.org/10.3968/j.ibm.1923842820120401.0145 INTRODUCTION ‘The customer is king’ is a traditional business maxim and, according to this, everything that an organization does should be geared towards satisfying the needs of its customers. However, the initial question is ‘should business organizations have responsibilities to the public in general? The question is becoming increasingly important, as business organizations have never before being subjected to such initial assessment from those who are quick to identify the harmful side effects of their activities. Organizations are set up for the achievement of specified objectives such as profit maximization, growth, expansion, increase in market share etc. Abell, D.F. (2000). However, no organization can exist in vacuum, therefore there is the need for organizations to understand the needs and satisfy them profitably Harrison, J.S. and St.John, C.H. (1998). Prior to understanding the needs of the target market, it is vital for organization to have cordial and favorable relationship with the target market because the target market is an integral part of the environment. The organization and the target market reside in the environment, therefore a favourable relationship will allow for a effective communication between the organization and the potential target market(s). Aside from having effective marketing communication, it will also pave way for understanding the needs of the target market and how to effectively channel the marketing mix in time, projecting favourable image of the organization at a profit.