Zhang Linwen 585557518
According to Kilkolly-Proffit (2015), Rajesh is a non-executive member of Bio-Plastics Inc. states that the company should continue cooperating with Lanos to earn more profit in the future. Both stakeholder and shareholder theories are related to his opinion and may affect the performance of the company. This essay will discuss the stakeholder and shareholder theories in the relationship with Rajesh 's idea respectively. Also, this article will analyze why I agree with Rajesh 's position to consider sustainability.
The stakeholder theory is defined as "the idea that a company should have an expanded role and responsibilities to other stakeholders besides it 's owners" (Pfarrer, 2010, pg88). In this case, the company
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In Rajesh 's opinion, he believes that "although the company has a responsibility to the island and people of Lanos." (Kilkolly-Proffit, 2015, pg5). Therefore, this statement strongly similar to the responsibility part of the stakeholder theory. Recently, the company is focusing on environmental, social and economic aspects of sustainability which benefit Lanos people and environment. With Rajesh’ idea, the company will continue cooperating with Lanos; so, it is helpful to improve Lanos environment and support residents with providing jobs (Kilkolly-Proffit, 2015). Apparently, Bio-Plastics Inc. will have some difficulties in the short run because “Bio-Plastic Inc. is being threatened by very strong competition in the industry from other plastics manufacturers” (Kilkolly-Proffit, 2015, pg4). However, in the long-term Bio-Plastics Inc. may accept a considerable number of residents because …show more content…
Corporate Social Responsibility (CSR) is used to “describe how business and institutions address environmental, social and economic sustainability.” (Mckee, Kemp, Spenie, 2012, pg553). To be more specific, Rajesh’s position support CSR as he states that the company should continue cooperating with Lanos government and keep using the environmental sources for sustainability (Kilkolly-Proffit, 2015). Firstly, socially a lot of job opportunities which are provided by the Bio-Plastics Inc. to residents can help low-income people to support their families and improve the social facilities; also, it provides its employees with good welfare which nevertheless satisfies them a lot (Kilkolly-Proffit, 2015). I believe that the company makes local people change the way of producing plastic items and aware the pollution, which is harmful to their health, is caused by behindhand plastic industry. Moreover, the Rajesh’s idea relate strongly to the environmental sustainability as he states that “choose to use genetically modified trees” (Kilkolly-Proffit, 2015, pg5) is an infeasible idea. Green economy is defined as “an economic model that focus on development and use of renewable energies such as the wind, …, and move businesses and communities toward environmental sustainability.” (Mckee. et al, 2012, pg539). Presently, Bio-Plastics Inc. is using renewable
It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long term goal.
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.
According to the case study, the work of environmental managers often exposes them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police". Stakeholders The stakeholders in this case study include the corporation, the community and the countryside.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
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.
Stakeholder is any groups or individuals that are affected by the attainments of the organisation’s goals. [] In this situation Coca-Cola situation we can determine following group of stakeholders. They include local communities, employees, customers, suppliers, competitors, countries, law, and government regulatory parties.
Stakeholders are those that have an interest in the business and are directly or indirectly affected by the success of the company’s objectives. In any one strategic decision, the interests of one stakeholder group can conflict with those of another. Analysis of the company’s relations with its stakeholders, provides conclusions based on how Byte engages in corporate social responsibility. Specific stakeholders of focus are on employees, customers, government, suppliers, shareholders, community, and competitors.
Important companies like Shell, DuPont, BP has been reorganised to generate profits from this green market of goods and services. In this sense, it may sound altruistic, "the sustainability", the logic of profitability and competition is what will determine the ability of companies of the future to meet the changing needs of consumers.
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
In the current time of growth and progression, individuals should know that how a business not only flourish but sustain itself. Making profit is one of the main targets of every corporates but it must not be the only one. When an individual builds a company in order to do business, they should be well aware of their contribution towards the society as well as their business and employees in it. It is total strategy of all. We should be able to realize every increment contributes of it. One of the major factors that affect a business is how well it participates in Corporate Social Responsibility. According to (Werther & Chandler, 2006) corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefits the society. In authenticity, there is a whole lot to argue about it. There are no major guidelines that decides either a business is participating in Corporate Social Responsibility; what might be considered a Business practicing CSR to some, can still not be accepted for it by others. CSR may be restrained a term which his highly flexible. This paper will discuss about Corporate Social Responsibility and its
Examples of Stakeholder’s could be: managers, directors, employees etc. It is based upon a conceptual framework approach in which it provides moral and ethical values to a business organisation. When in practice, majority of organisations are mainly going to focus on corporate social responsibility. The reason for this is because CSR is seen to have a big impact on the firm as many people are recognising that there is a increasing number of businesses that are both socially and environmentally friendly. On the other hand, if the government doesn’t intervene with companies in terms of both regulation and legislation, this means that firms will only be concentrating on the accounting figures. If companies are primarily focusing on the accounting figures, this indicates that businesses are not taking in the social and environmental impact of the activities within the organisation. In (Liu, Fellows and Tuuli, 2011), it refers to corporate citizenship values in which it considers and identifies the different demands of the stakeholder groups to see where the overall value of the company comes from taking into thought the environment and