One of the important factors of business success is to build relationship between stakeholders.

Who are stakeholders? Stakeholders are any constituencies in the organization’s environment
that are affected by an organization’s decisions and actions. These groups have a stake in or are
significantly influenced by what the organization does. In turn, these groups can influence
theorganization. Veja is the company which pays a great attention to this relationship. The
relations between Veja and its stakeholders are based on transparency and fairness. These
stakeholders include internal and external groups. The internal stakeholders of Veja are : the 2
founders that surprisingly are the sole shareholders of the company, also internal stakeholder is
the manager CEO-Laure Browne and employees. The factory where Veja trainers are made
in South Brazil respects the standards of work established by the International Labour
Organization. 80% of workers at the factory are unionized. Veja has rather young
workforce, with the average age of around 30 years. What is more important, the
average monthly salary in 2017 was 1335$,Moreover, they get a bonus at the end of the
year. Each employee contributes between 7 and 11% of their salary to the INSS (government
retirement plan). In case of the employee is laid off or quits, the contribution amount belongs to
the employee.
External shareholders of Veja are: its suppliers from Brazil, they buy wild rubber from
communities inside Amazonian forests. Everytime they visit the communities, have
annual meetings to help understand how they can do better for the community and the
forest. Customers are its external stakeholders. Estimated Annual Revenue for veja
was 21M in 2017. In reviews of veja customers it is often written that On their webpage
you can read about what they do and how they work. They write about that they have a
zero zero strategy, their certifications, how they work for the environment and better
conditions for workers. But what makes us trust this company even more is that they are
also showing their limitations and not just the good parts. On the webpage they write
that they are not perfect and they describe the company as a project that is constantly
evolving. Competitors are another external stakeholders such as TOMS, D.A.T.E and
Axel Arigato. As veja has zero stock and zero advertising policy, it’s quite competitive
on the market. Furthermore external stakeholders are social and environmental
advocacy groups whom veja conducts annual meetings. Why should veja care about
these relationships?
For
one thing, it can lead to desirable organizational outcomes such as improved predictability
of environmental changes, more successful innovations, greater degree of trust
among stakeholders, and greater organizational flexibility to reduce the impact of
change. Another reason for managing external stakeholder relationships is that it’s the “right”
thing to do. Because an organization depends on these external groups as sources of inputs
(resources) and as outlets for outputs (goods and services), managers need to consider their
interests.
Now Achi will continue talking about the next topic.