Stakeholders are parties who have interests in a company and vice-versa a company can not exist without them. These stakeholders includes all individual by this we mean the consumers, members as in the investors, employees and board of directors. In this paper we will be discussing the wide concept of stakeholders, their types and characters they hold to play in the corporate market. Here we will also be discussing how government and community plays a vital role even though they are additional support when it comes to being a stakeholder.
A stakeholder of a company is like a theory, without which creates business ethics and organizes the working of the company. Stakeholders are of two kinds:
- Internal Stakeholder
- External Stakeholder
Both the stakeholder act as kind support system to a company. Where internal deals with building the structure and getting capitals; whereas, the external plays a vital role in developing goodwill mechanism of the company.
And they both have a common interest not only the development and expansion but also to make profits out of that. It’s just like throwing a stone in the pond which helps in raising the flow even though you are standing at the dead end.
So here in this paper, we will be discussing the types of stakeholders in the company. And what all vital role they are playing in maintaining the business cycle.
As we have already mentioned the objectives for which will be discussing in this paper, so let’s commence as per the flow chart.
These are the body who directly involves the internal functions of the company and even become the reason for the development of public relations. Also, the investors and employees want or have a common interest to earn more profits and wages out of their effort.
And the group of internal stakeholders includes:
Employees in the context of business or company are the body who are been hired for providing services to the company and with the common interest of earning profit as a wage out of it. And they do not provide services as an independent business.
They are the priority for any company, as they put equal time, effort into the business by creating a strategy, tactics with the reason for the company’s development. And their development will equivalently affect the development of the employees’ interest.
They play the role of supervisors, motivators in the development of the company. They create synergy in the internal environment by creating an understanding of growth between the manager-employee relationship.
They play a vital role in determining the environment of the business and according to plans, make strategies, become the voice of link between the employees and shareholders. Here they take decisions and if anything goes wrong they are answerable to that.
An owner is an individual or group of individuals who legally holds the shares, property, assets in the company and generally, the intention is to make profits out it. They are running a corporation. They are the significant persons who hold the shares in a firm. They are mostly a part of both internal and external stakeholders.
They bind together the business with the help of outsourcing and giving equal opportunities to the manager in taking decisions a managerial part of the business.
It integrates into the market of business and helps in a goodwill mechanism developing the situation of the person. it helps in understanding the impact broader external market, local communities don’t play any role financially but they help in taking decisions.
Examples of external stakeholders are costumers, suppliers, investors, local community society. They help by giving economical and managerial support to the business. Whereas, govt. also plays a similar role when it comes to paying taxes and deductions. And the community society helps by maintain working order among the employees and their union.
Let’s talk about external shareholder in detail:
They are the community who are the base of the company’s existence. As they give us their review on our specific product, good or service which we provide to them and accordingly we work things out in the view of their needs. So, they play a very important role in that condition.
Connecting with them socially, organizing surveys where they co-operate equally as we need two hands for a clap so progress and development of business can’t be done one-sided. Now a day’s big data plays an important role in letting know what our costumers like as a taste, hobby, passion etc.
Suppliers are the production team who are equally important. They are an interdependent body who have their own motive behind the success of the company. They make easy availability of raw materials, dispatch of ready products.
As well as, their own connection also sometimes becomes a USB for us. And it all is possible only by good relations as they are also an internal development face even though they are external supporters or stakeholders.
A business can be a beneficiary to communities from which they are also aware. Providing tax money, local access to external market conditions, creating goodwill in the society makes the community into good relation until any negative aspect arises from any side.
The government takes taxes and builds a respective image among the nation by having a belief and that belief helps us raising day by day with moral and social support. It even makes us aware of creating a social legal responsibility in between. But it’s also an equal motive of earning the profit. As the government needs funds to be provided and sometimes services also.
In today’s era, the expansion of any business is been done on an international level and it is only possible with the help of a vast society and its communication. In now a day’s social media and internet community have become a major source for getting the communication gap closer.
Uber, Air bnb are some of its examples who have done this possible on going to at it limit in giving their services and earning profits by it, and even maintaining it on a scale of 10 out of 10.
Therefore, This research paper just wanted to create a mind of their readers to think about the stakeholder of any company is the back-face and back-bone of a company, they are their representatives. Even they are vested with the common interest of having a profit but profit-making I not their priority more than that its productivity and popularity of a company and its business.
It’s kind of long-term social relationship. Doesn’t act as a shareholder and a company relationship, as they come together for the cause of finance and making a profit. And shareholders are somewhere the same as stakeholders but a stakeholder is more than just a shareholder.