Stakeholders in Airport Decision Making

Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.

One of the stakeholders group is customers. As they are the most important part of the business, without them you cannot operate the business. If u doesn’t have customers for whom will you produce? They just want high quality product at fair prices and good services. By building up the second runway they will be able to fly more flights and more customers will be attracted as they can easily get the ticket. The price of tickets might rise as the demand will rise which customers will don’t want. It will be convenient for their customers as there will more choices of airline flying there, they can choose amongst them.

The second stakeholder group is shareholders. The shareholders employ people to run the company on their behalf. They have nothing to do in the business, they are just investing in the company and they are only concerned about their dividends which they get as a profit in the end of the year. In this case they will be quite happy because as the building of the second runway profits will rise and they will get more dividends. They just want to use cost-effective production i.e. reduce the costs as much as possible in order to build the second runway and make the prices higher.