This document discusses stakeholders of an organization. It defines a stakeholder as any person, group, or organization that has interest in or is influenced by the actions of an organization. Stakeholders are classified as either internal or external. Internal stakeholders include shareholders, employees, and management. External stakeholders include customers, suppliers, creditors, competitors, and the community. The document provides examples of each stakeholder group and describes the organization's responsibilities toward meeting stakeholders' interests.
This document discusses stakeholders of an organization. It defines a stakeholder as any person, group, or organization that has interest in or is influenced by the actions of an organization. Stakeholders are classified as either internal or external. Internal stakeholders include shareholders, employees, and management. External stakeholders include customers, suppliers, creditors, competitors, and the community. The document provides examples of each stakeholder group and describes the organization's responsibilities toward meeting stakeholders' interests.
This document discusses stakeholders of an organization. It defines a stakeholder as any person, group, or organization that has interest in or is influenced by the actions of an organization. Stakeholders are classified as either internal or external. Internal stakeholders include shareholders, employees, and management. External stakeholders include customers, suppliers, creditors, competitors, and the community. The document provides examples of each stakeholder group and describes the organization's responsibilities toward meeting stakeholders' interests.
JUNNAR BACHELOR OF BUSINESS ADMINISTRATION CLASS:- TYBBA SEMESTER:- 5th SUBJECT:- BUSINESS ETHICS PRESENTED BY:- RAVIRAJ DEVANAND CHALAK STAKEHOLDERS A STAKEHOLDER CAN BE DEFINED AS AN ENTITY (A PERSON OR GROUP OR AN ORGANIZATION ) WHICH HAS A STAKE IN THE ORGANISATION. THIS STAKE CAN BE DIRECT OR INDIRECT. SOME OF THE MAJOR STAKEHOLDERS OF AN ORGANISATION ARE ITS EMPLOYEES, ITS DIRECTORS, CREDITORS, SUPPLIERS, THE OWNERS, CUSTOMERS, THE GOVERNMENT AND THE COMMUNITY AT LARGE. THE RELATIONSHIP BETWEEN THE STAKEHOLDER AND THE ORGANISATION IS TWO-FOLD. ON ONE HAND, THE STAKEHOLDER HAS THE POWER TO INFLUENCE THE DECISIONS, POLICIES, ACTIONS AND PRACTISES OF THE ORGANISATION, WHILE ON THE OTHER HAND THEY ALSO GET INFLUENCED BY THESE FACTORS. CLASSIFICATION OF STAKEHOLDERS
ON THE BASIS OF RELATIONSHIP WITH THE ORGANISATION, STAKEHOLDERS CAN
BE CLASSING INTO TWO MAJOR GROUPS:
1. INTERNAL STAKEHOLDERS:- THE PEOPLE THAT ARE INSIDE THE ORGANISATION, OR THAT WORK DIRECTLY WITH THE ORGANISATION, ARE KNOWN AS INTERNAL STAKEHOLDER. SOME MAJOR INTERNAL STAKEHOLDERS ARE AS FOLLOWS:
1. SHAREHOLDERS: SHAREHOLDERS ARE THE INDIVIDUALS OR
COMPANIES WHO HOLD THE SHARES OF THE ORGANISATION. HENCE, THEY ARE CALLED THE "OWNERS OF THE BUSINESS". SHAREHOLDERS ARE TREATED AS THE MEMBERS OF THE ORGANISATION THESE SHAREHOLDERS INVEST IN THE ORGANISATION SO AS TO HELP THE ORGANISATION IN REALISING ITS OBJECTIVES. THE ORGANISATION'S PRIME RESPONSIBILITY IS TO FULFIL THE INTERESTS OF SHAREHOLDERS. THE SHAREHOLDER GET THE SHARE IN THE PROFITS AS A RETURN FOR THE INVESTMENTS MADE BY THEM. 2. WORKERS/EMPLOYEES: WORKERS OR EMPLOYEES ARE THE PEOPLE WHO WORK IN THE ORGANISATION, AND IN RETURN THEY EXPECT REMUNERATION, BENEFITS, SECURITY, ETC. THE RELATIONSHIP BETWEEN EMPLOYEES AND THE ORGANISATION IS BASED ON THE EMPLOYMENT CONTRACT. EMPLOYEES CONTRIBUTE THEIR TIME AND EFFORTS FOR THE BENEFIT OF THE ORGANISATION, WHICH IN TURN POSES CERTAIN OBLIGATIONS ON THE ORGANISATION.
IT BECOMES THE RESPONSIBILITY OF THE ORGANISATION TO FULFIL ITS DUTIES
REGARDING ITS EMPLOYEES. ONE OF THE MAJOR RESPONSIBILITIES OF THE ORGANISATION TOWARDS ITS EMPLOYEES IS TO TREAT THEM AS HUMAN BEINGS AND ACKNOWLEDGING THEIR SIGNIFICANCE AS A VALUABLE RESOURCE FOR ACHIEVING ORGANISATIONAL GOALS. 3. MANAGEMENT: MANAGEMENT OF AN ORGANISATION AFFECTS THE ORGANISATION AS WELL AS OTHER STAKEHOLDERS. MANAGEMENT IS RELATED WITH THE ORGANISATION THROUGH AN IMPLICIT OR EXPLICIT CONTRACT. THE MAJOR RESPONSIBILITY OF THE MANAGEMENT IS TO MAINTAIN THE OPERATIONS OF AN ORGANISATION AS WELL AS TO MAKE STRATEGIES FOR THE WELL-BEING OF THE ORGANISATION. MANAGEMENT IS RESPONSIBLE FOR HARMONISING THE DIFFERENT ENTITLEMENTS OF THE STAKEHOLDERS. 2.EXTERNAL STAKEHOLDERS: THE INDIVIDUALS, GROUPS OR COMPANIES THAT AN OUTSIDE THE ORGANISATION AND WORK INDIRECTLY WITH THE ORGANISATION ARE KNOW AS EXTERNAL STAKEHOLDERS. EXTERNAL STAKEHOLDERS CAN INFLUENCE AND B STAKEHOLDERS ARE AS FOLLOWS: 1.CUSTOMERS: CUSTOMERS OR CONSUMERS ARE THE PEOPLE OR ORGANISATIONS THE PURCHASE THE PRODUCTS OF THE ORGANISATION. HENCE, CUSTOMERS ARE ONE THE MAIN SOURCES OF REVENUE FOR ANY BUSINESS. AS THESE EARNINGS ARE IT INVESTED IN VARIOUS BUSINESS ACTIVITIES, THEREFORE, CUSTOMERS ARE THE LA ASSET INVOLVED INDIRECTLY IN THE NEW PRODUCTSERVICE DEVELOPMENT PROCESS. CUSTOMERS MAXIMISE THE SALES OF THE ORGANISATION BY PURCHASING ITS PRODUCTS AND BY SPREADING POSITIVE A WORD-OF-MOUTH. HENCE, SATISFYING CUSTOMERS IS ONE OF MOST IMPORTANT GOALS FOR AN ORGANISATION TO SURVIVE IN THE LONG-RUN. 2.SUPPLIERS: SUPPLIERS ARE THOSE INDIVIDUALS OR BUSINESS OWNERS THAT SUPPLY THE RAW MATERIALS OR SEMI-FINISHED GOODS TO THE ORGANISATION FOR THE FINAL PRODUCTION PROCESS. SOME SUPPLIERS THAT DELIVER FINISHED GOODS TO THE CUSTOMERS ARE CALLED DISTRIBUTORS. THE QUALITY AND VALUE OF END- PRODUCT IS DEFINED BY THE MATERIAL PROVIDED BY THE SUPPLIERS. THEREFORE, BUSINESS DEALINGS WITH THE SUPPLIERS SHOULD BE TREATED WISELY BY THE ORGANISATION. IT IS VERY IMPORTANT FOR THE ORGANISATION TO DEVELOP GOOD RELATIONS WITH THE SUPPLIERS THROUGH WHICH THE PRODUCTION COSTS CAN BE MINIMISED WHILE PRODUCTIVITY AND QUALITY CAN BE MAXIMISED. 3.CREDITORS: THE COMPANIES THAT PROVIDE RAW MATERIALS OR SEMI- FINISHED GOODS ON CREDIT TO THE ORGANISATION ARE CALLED AS CREDITORS. IF THE ORGANISATION DOES NOT PAY THE DUE AMOUNT IN TIME, THEN THE BUSINESS IS AT A RISK OF LOSING ITS COMPETITIVE EDGE, AS JUDICIOUS RELATION BETWEEN THE ORGANISATION AND ITS SUPPLIERS IS ONE OF THE MAJOR SOURCES OF SUCCESS. IN CASE OF DISSATISFACTION, THE SUPPLIERS CAN AFFECT THE BUSINESS OF AN ORGANISATION BY DISCONTINUING THE SUPPLY OF GOODS OR BY SUPPLYING POOR QUALITY GOODS. 4.COMPETITORS: THE ORGANISATION IS GRATEFUL TO ITS COMPETITORS AS IT IS TOWARDS ITS STAKEHOLDERS. ANY COMPETITIVE STRATEGY ADOPTED BY THE FIRM CAN POSITIVELY OR NEGATIVELY AFFECT THE OPERATIONS OF ITS COMPETITORS AND VICE VERSA. HENCE, AN ORGANISATION SHOULD ALWAYS ADOPT ETHICAL MEASURES FOR SURVIVAL IN THE COMPETITIVE MARKET. THANK YOU