Stakeholders large firms

An Example of an External Stakeholder External stakeholders are a little harder to identify, seeing as they do not have a direct relationship with the company. Stakeholder reciprocity could be an innovative criterion in the corporate governance debate as to who should be accorded representation on the board.

Stakeholders can affect or be affected by the organization's actions, objectives and policies. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees. This is due to the negative externalities of factories, in the form of noise or air pollution and bad ode ours.

For example, according to this thinking, programs that satisfy both employees' needs and stockholders' wants are doubly valuable because they address two legitimate sets of stakeholders at the same time. Robert Allen Phillips provides a moral foundation for stakeholder theory in Stakeholder Theory and Organizational Ethics.

This might have the effect of making another important group of stakeholders, its employees, unhappy. External Stakeholders There are two primary categories of stakeholders for any company: They are the influencers of many key external stakeholders.

This includes not only vendors, employeesand customersbut even members of a community where its offices or factory may affect the local economy or environment.

Thus, the employee has every interest in seeing the company succeed. Unlike shareholders who are solely interested in return dividends and share price growth, stakeholders have wide variety of interests in how companies operate. For instance, by simultaneously addressing customer wishes in addition to employee and stockholder interests, both of the latter two groups also benefit from increased sales.

Many local school districts across the country have stood against medical marijuana dispensaries being located near schools.

While external stakeholders have no direct control in a company, their indirect control has great impact on major business development decisions. The most efficient companies successfully manage the self-interests and expectations of their stakeholders.

Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs

In privately owned and publicly traded companies, large investors often directly participate in business decisions on the management level. A real estate developer could run into permit problems if the residents don't want the company to build on a bird sanctuary or don't want high rise buildings next to their residential homes.

This includes not only vendors, employeesand customersbut even members of a community where its offices or factory may affect the local economy or environment.

While employees may or may not have a profitability stake or financial risk stake, they do have their financial livelihood at stake.

Taxes and GDP Governments can also be considered a major stakeholder in a business as they collect taxes from the company corporate incomeas well as from all the people it employs payroll taxes and other spending the company incurs goods and services taxes.

Do you agree or disagree? Furthermore, in some cases there is not perfect information and so if a firm is forced to leave the community the consequences are devastating due to a loss of so many jobs. External stakeholders may also seek to prevent a business from doing something in a community.

However, many believe that due to certain kinds of board of directors structures, top managers like CEOs are mostly in control of the firm. This relationship has studied on context of developed and emerging economies as contributor.

Firms can gain a competitive advantage when they focus on serving the needs of stakeholders and are responsive to changing market demands. Some examples of key stakeholders are creditors, directors, employees, government and its agenciesowners shareholderssuppliers, unions, and the community from which the business draws its resources.Aug 14,  · When It Comes to CSR, Size Matters.

Stakeholders: Large Firms Essay Sample

to SMEs given their characteristics and how they differ from large corporates. and brand reputations and enhanced trust with key. Communities are major stakeholders in large businesses. They are impacted by a wide range of things, including job creation, economic development, health, and safety.

When a big company enters or exits a small community, they will immediately feel the impact on employment, incomes, and spending in the area. Aug 14,  · Fundamentally, however, CSR refers to the obligations of the firm to society or, more specifically, the firm’s stakeholders—those affected by corporate policies and practices.

Stakeholders: Stakeholder's concerns: Government: taxation, companies can prevent damage to their image and brand, prevent losing large amounts of sales and disgruntled customers, and prevent costly legal expenses. While the stakeholder view has an increased cost, many firms have decided that the concept improves their image.

The main objective for firms is profit maximization and for this reason I agree to a certain extent that large corporations abuse their power against stakeholders.

Firstly, Customers, “provide the lifeblood for the firm in the form of revenue.” (Freeman ). By linking stakeholder engagement to corporate strategy, companies are committing to deeper engagement on material issues with their stakeholders, led in close partnership with executive teams across multiple corporate functions.

Download
Stakeholders large firms
Rated 3/5 based on 20 review