According to Investopedia, a stakeholder is a party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations. (Investopedia 2012) The familiar obstruction that develops with having several stakeholders in an organization is they have an assortment of self - motivating agenda’s that may not be congruent to each other. The fact is that they or more than likely in discord with the other faction.
The partners should be of like mind and have a contract that states the percentage of profits, losses, debts and day to day duties that each partner is responsible for. The contract should also state what happens if one of the partners dies or retires. In a partnership you are legally responsible for your partner's actions and can be held labile for these actions. Partnerships report their earnings, losses and deduction for the business operations, but the business itself doesn't pay taxes. The business "passes through" it's earnings or losses to its partners.
(Schlesinger) Stakeholder can be outer or inner to the commerce or the organization. For the victorious execution of the commerce and for the correct or utilized use of invested money, stakeholders rely on the CEO. Therefore, pay of the CEOs is vital for the stakeholders of the John Deere and Caterpillar. b. Literature
The internal users all share the common fact that they are within the Staples Company. These people include Management, Employees, and Owners. More specifically the accountants, Jr. Accountants, financial officers, and CPA. The external users are those who are not working within the company, but still hold strong financial ties with the company. External users most commonly include creditors, tax Authorities, investors, and customers.
This is a problem that a lot of nig corporations face these days when being funded by investors or government agencies. There are cases from the past where government funds were given to an organization to use for training purposes. When funds are coming and going in an organization, un ethical people do not record all the necessary information to track the funds correctly, showing that there is more available that there actually is. When this happens, audits are necessary to find where the monies are missing from, eventually exposing the guilt parties so that they can be prosecuted for their
2). Every stakeholder has a different interest in the company well-being. Internal stakeholders are the organization stockholders and owners. They request proper return on their investments. In addition, stockholders have the right to inspect the company books, and elect the board of directors.
The process of making decisions in the ethics games were based on the position of employment within the company. The position within the company can change based on an employee’s level. Ever employee has a duty to report issues, it is the position held that changes in what to do with the information. With the position held in these games the first process was protecting the shareholders and thinking of how this could affect those involved. The issues were dealing with by the employees in this exercise can affect the company and the individuals.
Scholars such as Friedman suggest that treating the economic responsibility as the most important responsibility of a business, is called a profit-maximising view, and “the social responsibility of a business is to increase its profits.” This kind of view states that a company should be operated on a profit-orientated basis, with its sole mission being to increase profits. This approach would seem to benefit stockholders, as well as stakeholders, as the stockholder is going to benefit from the profit made by the company and will gain something back from the company, however problems can occur when the businesses and companies do not balance their ethical responsibility, as they can therefore be perceived as greed and unable to balance their corporate social responsibility, and will cause a bad name for a business. So although the stockholder may also be gaining profit by doing this (what the company sees as doing the right thing) is not necessarily the right thing to do in terms of stakeholders. However, Friedman would argue that as long as the business is maximising its profit, that is the main point and so the loss of the stakeholders is less important. This argument can be deemed as weak as Friedman’s approach does not mean that stakeholders can be benefited alongside stockholders, and so disagrees with
In this scenario the pro’s outweigh the con’s and therefore it would be a great idea to form a corporation. Choosing the proper formation to conduct business is crucial for an organization. Whether one believes that personal liability, limited liability, or double taxation will increase their chances of surviving in the business world each organization has the ability to choose a specific formation. Formations of a business are unique, some benefit some organizations more than others and so forth. However, in most cases if circumstances
The Director of IBE, Philippa Foster Black, stated: "Not only is ethical behavior in business life the right thing to do in principle, we have shown that it pays off in financial returns.” (Foster-Black, P. 2006) Companies are continually presented with challenges and opportunities formed by concerns about their environmental and social impact. Management needs to understand the factors that constrain a company’s business value when dealing with these concerns. Scottish Power has had to review their business pitfalls since taking the position of the first foreign utility company to merge with an American electricity market, PacificCorp. This move has expanded into consulting services in areas such as, design and construction of power plant buildings, the development of control monitoring devices, installation and maintenance, analysis of water samples and environmental components, to name a few. They are also associated with a world leader in renewable energy, The Iberdola Group, opening opportunities for green solutions and the new mandatory global carbon emissions reduction scheme.