Stakeholder signifies an individual or individuals who take concern or interest in anything, majorly commerce. (Grimsley) CEO is accountable for the failure or the success of the organization. Both the organizations John Deere and the Caterpillar requires the tasks to be carried out efficiently such as marketing tactics, operations financing, firing, human resources, formation of the culture of the organization, hiring, sales, compliance with the protection directives, PR, etc. The entire of these activities are tackled from the CEO. Stakeholders can decide a plan for the commerce.
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.
On the other hand an external stakeholder is someone who is from outside the business such as a customer, supplier or a member of the community. A stakeholder for Tesco may be someone that has the job of affecting their organisation either in a good way or a bad way. Below are listed main stakeholders in a business. * Workers * Managers * Owners * Customers * Suppliers * Government * Local Community Internal Workers A worker at Tesco is someone who has a clear interest in the business they are working in. They tend to rely on work for their income, bonuses, discounts, bonuses and holiday pensions.
In modern times, organizations try to create a corporate culture with a distinct identity or to mould the behavior of their members into a predetermined corporate cultural identity. The common notion is that only giant, global and multinational organizations can afford to have corporate culture. This view is not totally correct. One can find cultures of relatively small organizations along with the global and multinational giants. The corporate culture at Southwest Airlines can be defined within three areas including, core value, management style, and compensation.
Each employee is required to research, grow and educate themselves on each variety of plant offered. This ensures that whoever is working on a given day can answer questions about all items offered. Each grower can clone and retrieve seeds from their own garden. This saves the business a considerable amount on inventory
What are stakeholders? A stakeholders is anyone with an interest in a business and would be affected by the running or any decisions made by the business. Stakeholders are individuals, groups or even organisations that may be affected by the activity of the business. Subway Stakeholder | About the stakeholder within the business | Shareholders | A shareholder is someone who owns a share of a business. This may be an individual, a business person or even an organisation.
According to Friedman, “Only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but “business” as a whole cannot be said to have responsibilities, even in this vague sense.” (Friedman 1970) An executives’ obligation is to serve at the pleasure of the stockholders, a group of individuals who may have individual as well collective ideas as to what constitutes social responsibility. The executive is also the overseer of social responsibility for the employees of the company, as well as the customers they serve, as it pertains to the operations, processes and products of the company. In addition, the executive may also have his or her own personal ideals of social responsibility. Friedman states that this is why “the doctrine of “social responsibility” involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses.” (Friedman 1970) The executive, as an employee of the owners, must make decisions based on political realities as opposed to a market response.
Companies are in business to produce a profit for their shareholders. To make a profit one must consider all the stakeholders involved that make a business run. Stakeholders are the owners, employers, employees, investors, customers, suppliers, competitors, communities, media and government agencies. Some may think the only responsibility of business is to compete without fraud or deception and in a legal manner using its assets to increase profit. If you consider all the stakeholders, there is a responsibility to do more than make a profit.
What is franchising? (0.5 points) Franchising is a way of turning a company into a parent company with smaller retail outlets owned by independent operators. 5. What can happen to a business owner who has personal liability for their company? (0.5 points) A business owner who has personal liability for a company can be held personally accountable for the financial debts and illegal actions of the company.
Drucker (1979) suggest that a corporation or a business should be responsible for the effect it has on its staff, location, or anything it may come in contact with which is considered social responsibility. Friedman (1970) propose that a corporation cannot and do not have social responsibilities, only individual personnel within a corporation. This paper analyzes Cohen (2009) research with four other books to suggest that social responsibility is the responsibility of businesses to its employees, shareholders, and the public in its entirety. The Similarities and Differences of Social Responsibility Dr. Peter Drucker, Dr. William A. Cohen and Milton Friedman have differences and similarities of opinion about social responsibility. Social responsibility within an organization is thoughtful among social, ethnic, economic, and ecological problems, while mainly Dr. Drucker and Dr. Cohen agree, Mr. Friedman believes otherwise.