Business have many stakeholders.
Stakeholders – “Any group or individual who has an interest in or is affected by the activity of a business”
The expectation on businesses is that they comply with the law, they’re socially just and ecologically sustainable in their operations. They are also expected to practice ethical management and ‘do the right thing’ in the eyes of their stakeholders Stakeholders
Who are business stakeholders then?
Shareholders purchase shares in a company – This makes them partial owners.
Shareholders can vote on major decisions at an annual general meeting. They can also ask questions of the business at these meetings = direct influence.
Companies also need to ensure that they maximise the return for the shareholders in terms of their investments. They expect that the business be profitable so that they get a proportion of the profits (dividends).
Shareholders also get capital gains if the if the value of an organisations shares increase. Managers
Managers have a major influence on the business.
The responsibility is on the manager to run a profitable and successful organisation.
Ethical and socially responsible leadership and tactics should be the reason for increased sales.
The managers approach and leadership style can have a direct impact on the business and the employees productivity and morale.
Employees will influence business since the quality of the product depends on their skills and commitment.
Employees must be valued, trained properly, paid fairly and treated ethically to be valuable to the organisation.
If their needs are provided for they are more inclined to meet customer needs and be motivated to benefit the company.
Todays customers are astute, informed and better educated.
They are also increasingly more likely to see…