Important Stakeholders in a Corporation

IMPORTANT STAKEHOLDERS IN A CORPORATION 1

Modern corporations have two types of stakeholders who have a lot ofinfluence on the stability and the future of the business. The firsttype of stakeholders includes the employees. Employees are theprimary stakeholders in companies who directly contribute to thefinal product. They are important in a modern corporation becausethey determine the success and a desirable future of a company(Harrison &amp Bosse, 2013). Their motivation and the need skilldevelopment influence the quality of the products. For example, inBlackBerry, the innovations of the engineers determine whether thecompany will release a new product or not. Employees influence thefinance decisions since they require funds for training,remunerations and other benefits (Harrison &amp Bosse, 2013). Theamount of money that a company spends on them forms a big percentageof the profits.

The customers are the second important group of stakeholders. In themodern industries, there is a lot of competition and all thecompanies struggle to win more customers than their counterparts do(Fassin, 2012). Without them, the finished product would not have anend user. Customers have a significant level of since all theactivities done before the presentation of a product to the marketare to please the customer and increase the sales (Hörisch et al.,2014). For example, a company like Toyota has been recalling some oftheir models back and compensating the customers with new cars. Werethey not important, the company could not have gone to the extent oftracking them and replacing their cars. Companies invest heavily tomeets the needs of the customers and the amount of capital investedin customer satisfaction may directly correlate with a company’sprofits.

References

Fassin, Y. (2012).Stakeholder Management, Reciprocity and Stakeholder Responsibility.Journal of Business Ethics, 109(1), 83-96.

Harrison, J. S., &ampBosse, D. A. (2013). How much is too much? The Limits to GenerousTreatment of Stakeholders. Business Horizons, 56(3),313-322.

Hörisch, J.,Freeman, R. E., &amp Schaltegger, S. (2014). Applying StakeholderTheory in Sustainability Management Links, Similarities,Dissimilarities, and a Conceptual Framework. Organization &ampEnvironment, 27(4), 328-346.