ASSIGNMENT PROFESSIONAL & SOCIAL ETHICS

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Stakeholder
Any person or organization, who can be positively or negatively impacted by, or cause an impact on the
actions of a company, government, or organization.

Stakeholder Analysis
What is it?
• A technique you can use to identify and assess the importance of key people, groups of people, or
institutions that may significantly influence the success of your activity or project or Organization
Who uses it?
• Members of your quality improvement team.

Why use it? Use a stakeholder analysis to:

• identify people, groups, and institutions that will influence your initiative (either positively or negatively)
• anticipate the kind of influence, positive or negative, these groups will have on your initiative
• identify local institutions and processes upon which to build and
• develop strategies to get the most effective support possible for your initiative and reduce any obstacles to
successful implementation of your task.

When to use it?

Stakeholder analysis can be undertaken throughout all stages of the project cycle, but it definitely should be
undertaken at the outset of a project/task

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Case: CADBURY is one of the most famous company in the world, it is producing many products
like Dairy Milk (Bubbly Milk Chocolate, Golden Biscuit Crunch, Chocos, Caramel, Whole Nut,
Crunchie & Fruit and Nut), Chrispello Vanilla Velvet, Wispa Gold, Twirl, Boost, Star Bar, Flake,
Timeout, Picnic, Snack Wafer, Curly Wurly, Bournville Cocoa, Drinking Chocolate, Hot Chocolate
Instant, Hazel Nut etc. Here we analyze how Cadbury engage, manage and map its stakeholders.

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1) Stakeholder Identification & relationships

CADBURY'S STAKEHOLDERS

Cadbury gives its core aim as "working together to create brands people love". It knows that it works with
people and groups and has to try to keep them all pleased. There are many kinds of stakeholders but most
important are:
a) Primary or direct
 Shareowners: “Cadbury” has over 60,000 registered shareowners. These include private individuals as
well as large institutional investors, such as pension funds and banks. All shareowners are also entitled to
attend the Annual General Meeting, at which they have the opportunity to ask questions, discuss the
company's performance and vote on certain issues.

 Customers: The Company has ongoing discussions with its customers. Wholesalers and retailers provide
the vital link to consumers and it is they who make Cadbury Schweppes' brands widely available. The
company works in partnership with customers to meet their need for attractive, high-quality products
and business success.

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 Suppliers (and business partners): Cadbury Schweppes has 40,000 suppliers around the world and its
Ethical Sourcing Standards set out how to work with them. The company is in regular dialogue with its
suppliers and responds to their suggestions. For example, if a supplier had views on ways of improving
quality or efficiency then Cadbury Schweppes would listen and possibly act on ideas if they made good
business sense. Working in partnership with suppliers makes it possible to find out their needs and also
to ensure they satisfy Cadbury Schweppes' requirements for quality materials while operating in a
socially responsible way. Cadbury Schweppes evaluates potential suppliers against a set of standards
such as environmental protection and ethical labour practices prior to doing business with them and
encourages their principles and standards to be upheld during the relationship.

 Employees: Cadbury Schweppes has a tradition of encouraging direct, two-way involvement and
communication with employees. Managers hold regular individual and team meetings to inform
colleagues about the business and hear their views. The company also conducts surveys to check how its
employees feel about working at Cadbury Schweppes. Internal newsletters, a group website and many
local websites help employees keep up to date with what is going on.

b) Secondary or indirect
 Society: The Company regards itself as a citizen in the countries in which it operates and enters into
regular dialogue with organisations such as national governments and international bodies. For
example, the World Health Organisation (WHO) to discuss issues that affect the company. These issues
can be anything from agricultural policy to education and skills.

 Government: Taxation, legislation, employment, truthful reporting, diversity, legalities, externalities.

All businesses are affected by laws and legislation, and therefore governmental decisions impact on
business functions. The government has an interest in businesses doing well as this helps to keep
employment high and contributes to the Gross National Product (GNP).

 Media: Commercial appearance of the Cadbury’s new versions.

 Local Communities: All businesses must appreciate the role of the local community as a stakeholder. In
order to operate effectively and be well accepted in the area, the organisation should be valued by the
local community and help local people to understand why the company is beneficial to them.

 Finance Companies: Businesses need to maintain a good relationship with finance companies in case
they need to borrow money. Finance companies need businesses like Cadbury to do well so that they
can be sure that any money that they lend them will be paid back.

 Policy makers: These people or groups often have no official power – they may be “advisers” to those
with real power – but their opinions and ideas are often followed closely. If they’re on your side, that’s
a big plus

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 Consumers: Consumers can contact the company by various means and Cadbury deals with consumer
enquiries on a daily basis. It performs market research to track changing consumer trends. Many parts
of the business also use surveys and market research panels to find out what consumers think of
products.

2) Mapping Stakeholder Coalitions:

Coalitions btween the supporter groups/companies to:
 deliver superior shareowner performance
 profitably and significantly increase global confectionery share
 profitably secure and grow regionally
 ensure our capabilities are best in class
 Reinforce reputation with employees and society

3) Assessing the nature of each stakeholder’s interest:

Active: Supporters, Employees, Insurance Companies, Investors, Suppliers Media (Broadcast media, print
media, display media), Customers
Non-Active: Government, Opposition which includes other chocolate manufacturers and chocolate brands
like:
Mars, Kit Kat, Bounty, Snickers, Candy land, Milky Way, Tracker, Twix, Barlovento, Black River, Chocolate
& Love(award winning luxury chocolate brand), Nestle, Ferrero Rocher, Galaxy, M&M’s, Sunspire, Dove,
Hershey’s Milk chocolate, Carnation, Dallars, etc

4) Assessing the nature of each stakeholder’s power:

 Economic Power: Investors can with drawn the investment he/she invests in the company
 Political Power: Government can take action against the product if it was harmful to public
 Voting Power: Owners and Shareholders can vote their choice that affects the firm’s decision.

5) Constructing a matrix of stakeholder moral responsibilities:

Nature of Personal Responsibilities

Legal Economical Ethical Voluntary

Customers
Stakeholders

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Employee

Government

Public

6) Developing specific strategies and tatics

Stake holder potential to thread to organization

Potential for Cooperative with Company

High Low

Type 4: Mixed blessings Type 1: Supportive

Low

Government, Media, Local Community Employees, Investors, Insurance

Companies, Suppliers

Type 3: Non supportive Type 2: Marginal

Competitors ,Pressure groups, General Public, Customers, NGOS
Oppositions
High

Conclusion
This analysis can be used by Cadbury’s Management as a planning method to anticipate actions and reactions to
events and outcomes. By the use of this analysis, Cadbury can create a ‘Win-Win’ situation.

After this analysis, Cadbury can engage its Stakeholders more effectively. Engaging is about providing open
access and Cadbury has always taken its responsibility seriously. It knows that listening to and engaging with
stakeholders is essential to its success and has benefits for stakeholders. Engaging with stakeholders does more
than sustain their goodwill and co-operation: it enables the company to remain competitive and successful, to
keep in touch with wider social expectations, as well as making sure that the values and business principles of
the company are upheld.

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