Defining Stakeholders and their responsibilities
|✅ Paper Type: Free Essay||✅ Subject: Business|
|✅ Wordcount: 1433 words||✅ Published: 14th Oct 2021|
A stakeholder is a person, group, or organisation that has direct or indirect stake, that supports an organisation. They are called Stakeholders because they can affect or also be affected by the organisation’s actions, policies, and objectives. Key stakeholders in a business organization include Creditors, Customers, Directors, Employees, Government (as well as their agencies), Owners ( that is Shareholdes) , Suppliers, Unions, and the Community from which the business draws its resources.
Although stake-holding is usually self-legitimizing (those who judge themselves to be stakeholders are de facto so), all stakeholders are not equal and different stakeholders are entitled to different considerations. For example, a firm’s customers are entitled to fair trading practices but they are not entitled to the same consideration as the firm’s employees.
A short definition of a stakeholder is:
“Stakeholders are groups of people who have an interest in a business organisation.”
Type of Stakeholders
Stakeholders can be devided in two different groups as shown above that is internal as well as external. It also can be called as Primary Stakeholders and Secondary Stakeholders. Not only that, but some stakeholders are those who might be both that is interal as well as external.
For example company employee is by default internal stakeholder. But at the same time when he become the same companies customer he become the external stakeholder.
Stakeholders of Coca Cola Company
All most all the businesses have to keep in mind the effect of their activities on stakeholders. Coca-Cola is also not an exception. There are so many stakeholders in Coca Cola Company. They include all those stakeholders, who are most affected by or who most affect the way they do business. This includes Consumers/Customers, Suppliers, Manager, Owner(shareholders),Employees, Government & regulators, Speial interest Groups, Non-Govermental Organizations (i.e. NGOs) as well as the local communities/society in which Coca Cola Company operate.
Each and every Stakeholder has its own interests in Coca Cola Company and places different demands on them. The Company try to engage with each constituency according to its needs, using different engagement methods as appropriate.
Consumers are the external stakeholders. In Coca Cola Company, Consumer’s are given very much importance because they have a very much influence on business strategy because, wherever possible, consumers want to buy products from those companies on which they trust. So Consumer’s are very much influential. Because all business is after all depends upon a customers. If there will be no customers, there will be no business at all.
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Suppliers and business partners are vital to Coca Cola Company’s success. Because they help them refresh the world, more than 1.6 billion times every day, through delivering necessary products and services for their business. Having a sound, stable and ethical supply base is important for growth of the Coca Cola Company and the footprint that the suppliers leave in local communities around the world. As a company, they have a responsibility to hold their direct suppliers to standards no less than those required by applicable law. So suppliers are also very much influential.
Government agencies and civil society
Coca Cola Company made wide-ranging industry commitments. Such as the Action on Diet, Health and Physical Activity . They are a member of the different Union of European Beverages Associations , which the EU Platform acknowledged as ‘an example of best practice on how to develop and follow up the commitments made’.
Coca Cola also work with :
- National Government Agencies to implement sports and fitness programmes
- National Environment Ministries to protect watersheds
- Industry and Government Agencies to build sustainable packaging management schemes and promote recycling
So government is also influential at a a greater level.
Creditors are the external stakeholder of the Coca Cola Company. The Coca Cola Company participate in investor assessments and conduct briefings specifically for the socially responsible investment community. They routinely include sustainability performance in their all annual financial report and investor road shows. So creditors are also influential at a certain level.
Employees are not just internal stakeholders, they might be also external stakeholders. Because when any employee purchase an item from the same
Company in which they are employed they become external stakeholder. So just like other companies in Coca Cola Company also Employees are very much influential. So Coca Cola Company conducted a survey about the key measures of employees engagement. In 2007 Coca Cola Company won several awards, which includes:
- Best employer awards in Serbia and Poland.
- Second place in the Great Place to Work survey in Italy.
Owners are the internal stakeholders of the Coca Cola Company. They are the Primary stakeholders.In Coca Cola Company Stockholders have an immediate stake in a corporation because it is all about their money that is funding the company. If Coca Cola Company does well, their stock gains value and ultimately they earn more and more money. If the business does badly, simply they lose money. So shareholders are very very much influential in Coca Cola Company.
Non-Govermental Organizations (NGO’S)
The Coca Cola Company always rely on NGOs and public-private partnerships to inform and guide their policies and initiatives, as well as challenge them as they work on complex and fast-changing issues such as climate change and others.
Some of Coca Cola’s key stakeholders and partners includes the following:
- World Resources Institute
- World Wildlife Fund
- Carbon Trust
- Carbon Disclosure Project
The NGO’s also influential in Coca Cola Company.
Stakeholders of Cancer Research UK
Cancer Research UK is a non profit organization. But that doesn’t mean that it doesn’t have stakeholders. There are stakeholders just like other organization. Some examples of Stakeholders for a Non Profit Organization like Cancer Reseach UK are given here:
Director, Trustees , Donors, Employees, Government, Patients, Doctors and Nurses, Fundraisers,Volunteer,Corporate partners like Tesco and B&Q.
The Director is a person who board typically chooses to have this one person who is ultimately responsible to carry out the overall wishes of the board. The director is always directly accountable for the work of the staff and supports the work of the board committees. So director is a key stakeholder for Cancer research UK. So he is very much influential stakeholder.
Board of Trustees
Trustees are always much influential for any non profit organization. Cancer research UK also have a Bord of Trustees. They have to perform some duties like
- Carry out the terms of the trust instrument
- Defend the trust
- Proper investment of trust assets e.t.c.
So Board of Directors of Cancer Research UK are very much influential.
Employees are always influential for any organization, wether it is profitable or non profitable organization. So just like others here in Cancer Research UK, employees are very much influential.
In Cancer Research UK, volunteer are the most influential stakeholder as they are provide their help and time free of cost. Cancer research UK might can’t operate without the help of the service of the Volunteer’s. So because of the given reason, they are very much influential in cancer Research UK.
Donors are the person who gives monetary and non monetary help to the organizations. In Cancer Research UK, Donors play an important role as they are the distinct from others as they give their support to an organization from which they know, they will not getting any monetary refund. So donors are influential in Cancer Research UK.
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