Business Ethics and Corporate Governance
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Chapter 16 : Corporate Responsibility - Stakeholders
Stakeholders - An overview
Internal stakeholders
Shareholders
Employees
Management
External stakeholders
Consumers
Suppliers
Creditors
Competitors
Community.
Chapter Summary
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The chapter provides an overview of corporate responsibility
towards its stakeholder's i.e. internal and external stakeholders. Internal
stakeholders are shareholders, employees and management. External stakeholders
include consumers, suppliers, creditors competitors and community.
Shareholders are important to the business, because they have a primary stake in
the business. Organization's responsibilities towards the stakeholders are:
to provide professional management, fair returns on their investment, disclose
relevant information, protect shareholders assets etc. The organizations
responsibility towards employees are improving working conditions, maintaining
open and honest communications, welcoming suggestions/complaints, providing
equal opportunity etc. Management plays a key role in balancing the multiple
claims of stakeholders. |
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Therefore the responsibility of management involves maintaining healthy
relationships among the stakeholders. The organizations responsibilities
towards consumers include offering quality goods, providing prompt
services, treating customers fairly etc. Good relations with suppliers
will determine the profitability of the company. The company must treat
its suppliers with respect. Suppliers /creditors must be paid promptly.
Companies must also follow ethical competitive practices. Finally, the
responsibilities of the organization are, respecting human rights,
improving workplace safety and economic well being etc.
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Short Case Studies / Caselets