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Stakeholders and their conflict of interest
Primary and secondary stakeholders
Differences between primary stakeholders and secondary stakeholders not more than 500 words
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Stakeholders
Stakeholders: The individuals and groups of people who have
an interest in how the business is run. They are said to
have a stake in the business. An example of this is the
stakeholders for a school. These would be the Head teacher,
assistant head teacher, deputy head, head of year, assistant
head of year, subject teachers, senior teachers, cleaners,
canteen teachers, cooks, mentors, heads of department,
caretakers and nurses.
Main Interest or influence of each stakeholder;
v There are many different examples of stakeholders and what
they are interested in.
v Each stakeholder is interested in the business for a
different reason. For example one stakeholder would be the
customers. This example of stakeholder would have an interest
in the business because they would want to buy the products
the business is selling. They also would want more value
for their money and the goods the business is selling
should be meeting their expectations.
v Another stakeholder would be the employee. The employee
would be interested in the business because they would want
the business to succeed and make more money than other
businesses around the community.
The stakeholders are Raider Inc., PLB employees, Johnson printing owners and employees. Raider Inc. is a stakeholder because they must make a decision that impacts PLB. PLB employees are stakeholders because morale can be impacted by the
Their purchase habits can also help to give the company a better understanding of the
The NYSEG case touches upon a complicated topic: that of management of a corporation directly deciding upon and providing policies which redistribute wealth away from the corporate shareholders and into the hands of other stockholders. In this case, NYSEG’s Project Share is essentially a form of welfare where NYSEG takes corporate resources and profits and reallocates them to poor customers or customers with severe debt issues. In my opinion, what is strikingly unusual about this program is the extent to which it becomes involved in the lives of its customers. Customers identified for Project Share may receive financial counseling, help with substance addiction, and help connecting with other welfare services. The main question posed by this assignment is whether or not NYSEG’s Project Share is both altruistic and good business. I believe that it is…to an extent. In the subsequent paragraphs, I will explain my position, as well as what I believe the positions of Milton Friedman and John Boatright would be based upon the assigned reading of their views regarding corporate social responsibility.
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
needs to be sought out. Stakeholders, as they are normally called within corporate culture, are a
2.Who are the stakeholders and what are their points of view?
Stakeholders are individuals or groups who affect or affected by a policy. Policies are result of negotiation of conflicting interests, so stakeholder analysis can be used by policy makers for decision making.
A stakeholder can be characterized as an individual that has any contributed interest or impact on an organization. Stakeholder’s interest can potentially shift from organization to organization however one might notice the biggest difference lying somewhere in between profit and nonprofit organizations. In a non-profit organization, the reason for the organization is to satisfy its particular purpose while balancing costs. In an a revenue driven (profit) environment, stakeholders have an invested interest in both the productivity of the firm and also the general wellbeing with regards to the overall view of the organization. More often than not, an employee will typically treat their employments in an unexpected way. Despite the fact that
Stakeholders are individuals who hold a particular interest in a business, they are affected by the activity of the business.
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees, customers, local community and the suppliers (Freeman 1984 pp. 409–421).
The ultimate goal is to increase product sales. They have to depend on the customer to reach that goal. Making the customer feel comfortable and encouraging them to buy more goods is a process toward that goal.
s of strategy, structure, norms, values, and represents a radical innovation in the nonprofit sector” – Dart. The next is the characteristics of an individual entrepreneur. The term entrepreneur comes from the book of economics and it is defined as someone who undertakes a significant project. It used to identify as a venturesome individuals who stimulated economic progress by finding new things and better way of doing things. The characteristics of a social entrepreneur are those people who have entrepreneurial virtues that does not seek for profit but instead a social value. The social entrepreneur applied the entrepreneurial mindset to pursue a social m
A very common way of differentiate the various kinds of stakeholders is by identifying groups of people who have direct or indirect relationships with the organization. Friedman (2006) mentioned that there is a clear relationship between definitions of what stakeholders and identification of who are the stakeholders for organizations. The examples of main stakeholders in organization are Customers, Employees, Local communities, Suppliers and distributors, Shareholders. Other than those main stakeholders, the groups and individual like the media, public in general, Business partners, Future generations, NGOs or activists, competitors, government, policy maker and regulators are also considered as stakeholder.
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).