(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
As a company that is in business do earn a profit, the insurance company has to look at what is in the best interest of its shareholder. The stakeholders of that insurance company have ‘contracted’ through a policy to be protected by the insurance company and want their best interests to be of primary concern to the insurance company. So, it is with this conflict that insurance companies have to decide where their loyalty lies in all aspects of policy administration. Introduction First, it is necessary to understand some definitions of shareholder, stakeholder and the theory of conflict between the two. A shareholder is any person, company or other institution that owns at least one share of a company’s stock.
This is just one of many statements that investors will look at when looking into a company whether it is because they want to invest or are shareholders. Information from the income statement shows the users the activity of the company. The gross profits and the expenses are also important because of the profit. Expenses give the net income or (net loss) for the accounting period in question. These are important to the investors who are looking at the company but also to managers.
According to Friedman, “A corporate executive is an employee of the owners of the business. He has a direct responsibility to his employers and shareholders. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society” (221). The executives of the corporation have a responsibility to the shareholders because the corporation’s money is the shareholders money. As we read in the Forbes article, the author stated: “How did the corporation’s money somehow become the shareholder’s money?
They asked to in which researchers identify vested outsourcing as the best practice in outsourcing. By creating a culture of shared values and goals for both buyer and supplier, the success of the business is based on the win of both parties rather than sacrificing one (Vitasek et al., 2013; Vitasek et al., 2012). This model focuses on outcome, which means that only when the suppliers achieve the requirements of the buyers, the buyers will pay money to suppliers instead of paying for suppliers’ activities, therefore, suppliers have to understand buyers requirements and buyers needs to give suppliers enough space in order to achieve the outcome. In this way, Vested Outsourcing fosters an environment that both parties desire to innovate, to improve and to cooperate with each other. In Vested Outsourcing, there is no strong - weak relationship, both parties are equally invested in one another’s success (Vitasek et al.,
Section 1 – Know the employment rights and responsibilities of the employee and employer 1. Identify four main points that would be included in a contract of employment. If possible, use an example contract to support your answer (feel free to obscure any confidential information). Four main points that would be included in a contract of employment are: - job title - duties and responsibilities - pay - notice period 2a) List three key points of legislation that affect employers in a business environment. Three key points of legislation that affect employers in a business environment are: - Data Protection Act - Pay and pensions - Health and Safety Act 2b) List three key points of legislation that affect employees in a business environment.
“A manager’s responsibility should be to the shareholders (investors) alone.” Critically assess this view. I disagree with this view, managers should not only be responsible to those that invest, and instead they should not lose sight of other people important to their business, such as customers, employees, and services which may investigate or look into the business as well as obviously the shareholders who invest their money into the business, for a return through dividends and shares. In my opinion the customers are not the only responsibility of the manager or organisation, however they are one of the main responsibilities as customers are the resource upon which the success of the business depends, without customers the organisation would not exist, in sales or service based companies, the aim is to create products or services which people are willing to buy or pay for, without the customer an organisation would have no-one to sell their product or service to. The purpose of the organisation is to fulfil the needs of the customers, for example a food chain such as Subway is designed specifically to cater for the customer, giving them a full range of food to pick and choose from, making it possible to create a product designed specifically for the individual customer, Subway has launched a customer loyalty programme over the past years which aims to increase purchases and enable the company to get to know customers, the loyalty cards offers a points system relating to the money you spend, you are then able to purchase food with your points; this is a great method of creating loyal customers. Another responsibility of a manager is to involve their employees; in my opinion you have to involve your employees within the business, because it is practically impossible for your business to be successful unless your employees are committed to making it successful.
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.
Running Head: ETHICS AND CORPORATE RESPONSIBILITY IN THE WORKPLACE AND THE WORLD LEG 500 – Law, Ethics and Corporate Governance Assignment 2: Ethics and Corporate Responsibility in the Workplace and the World Introduction What is the difference between a shareholder and a stakeholder? Shareholders are stakeholders in a corporation, but stakeholders are not always shareholders. According to MacEachern (2009), a shareholder owns part of a company through stock ownership, while a stakeholder is interested in the performance of a company for reasons other than just stock appreciation. A stakeholder is a person, group or an organization that has an interest in an organization. A stakeholder can be any person who can affect or is affected by an organization, strategy or project.
Conclusion/ Status of Case Introduction Businesses have power through their ability to spend vast amounts of money. They have the ability to enhance or change situations that the common individual does not. As organizations affect many people, they have obligations to their employees, consumers, community and the world. They have a responsibility to conduct business in a way that is not harmful and which positively benefits as many people as possible and themselves. Although this sounds simple, it is "easier said than done!"