As Chief Executive Officer (CEO) of SunTrust Bank in Stafford, the purpose of this essay is after reviewing the organization and its culture and deciding that the corporation’s social performance is good but can use some changes to help improve in some areas. I will discuss the background of the company and analyze the various primary and secondary stakeholder groups, their roles, and relationships. I will recommend ways the stakeholders can influence the destiny of my business. Create a plan on how to encourage stakeholders to form a coalition to help achieve my goals. Lastly, anticipate any challenges in encouraging stakeholders to form a coalition to help achieve my goals and the steps I would take to overcome these challenges.
Social performance in any organization is a key factor that determines the relationship between the organization and its environment which consist of the consumers, the suppliers, stakeholders, and the government. Upon reviewing SunTrust’s culture and way of working, it was concluded that the corporation was at par and that its social performance was good. However, as a matter of concern, the area of social performance needed some changes and improvements.
SunTrust Banks, Inc. with total assets of $172 billion as of September 13, 2013, is one of the nation’s largest and strongest financial holding companies. SunTrust Banks, Inc. operates more than 1,508 retail branches in about a dozen southeastern and Mid-Atlantic States. The bank offers retail and commercial services such as credit, deposit, and investment services. SunTrust also operates with subsidiaries that offer mortgage, wealth, and investment management, insurance, investment banking, equipment leasing, and brokerage services. The mission and goal of SunTrust Bank is to help people and institutions prosper, provide financial service that meets the needs, exceed the expectations and enhance the lives of our colleagues, clients, communities and ultimately our shareholders.
There are many different stakeholders with SunTrust. The primary stakeholders also known as market stakeholders are the stakeholders, creditors, employees, and customers. All these stakeholders provide different transactions to the corporation. The relationships and roles vary between each primary stakeholder. The relationship and role of the stockholder is to invest in the business. The stockholders receive a satisfactory return on their investment into the business. Stockholders exercise voting rights based on the share ownership. Stockholders also have the right to inspect the company’s books and records. They have the power to have a negative or positive influence on the company, it is in their best interest to assist the company achieve its goal since in the success of the company benefits them as well. (Lawrence and Weber, 2011)
The relationship and role of the creditor is to lend money to the company for working capital and to collect payments that have not been made. Creditors help the bank to achieve its financial goals. Creditors can also repossess and seize any property that has a negative balance due to the lack of payment such as cars, homes, and other property. The relationship and role of the employees is to serve the customer by providing excellent customer service. It is the employees’ goal to make sure that all the customer needs are met.
Stakeholders have influence on a company’s destiny, in the early 21st century as community citizenship and social responsibility have been consistently integrated in business management. Customers, communities, employees, and business partners are among key stakeholder groups that carry weight in the destiny of a business. Understanding the impact of these stakeholders on business is especially important for medium and large businesses. Historically, businesses have made maximizing profits a primary focus of governance and business operations. However, social…