Stakeholders: society and government 1.8.

1 Stakeholders A number of individual or group who can affect or is affected by the performance of the organization. These groups or individuals are referred to as stakeholders. Stakeholders: Those persons and organizations that have an interest in the strategy of an organization. They include: shareholders and owners management Employees customers/clients suppliers local community local and national governments trade unions media regulatory bodies ressure groups. There are different classi!cations of the above stakeholders" for e#ample internal stakeholders $employees and management%& connected stakeholders $shareholders" customer and suppliers%& and e#ternal stakeholders $governments" community" pressure groups%. Corporate governance

Corporate governance is the system by which companies are directed and controlled. The primary reason for corporate governance is to protect stakeholders such as shareholders, employees and pensioners. 'orporate governance regulation is therefore primarily intended to remind directors of the limitations of their power" and to enforce the primary agency relationship of business ( that directors work on behalf of the shareholders.

Corporate social responsibility 1.9.1 General principles of CSR Social responsibility can be defined as )taking more than *ust the immediate interests of the shareholders into account when making a business decision+. ,ssues commonly associated with social responsibility include