Question

1. What are the Responsibilities of stakeholders in company performance?

Answer 1

Firstly let's understand who are stakeholders-

• A stakeholder is the one that has an interest in a company and can either affect or be affected by the business.
• The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers.
• However, the modern theory of the idea goes beyond this original notion to include additional stakeholders such as a community, government or trade association.

Responsibilities of stakeholders in vompanc performance includes the following:

• Decision Making
  The most common gathering of stakeholders in a publicly traded company is the board of directors, comprised of high-ranking executives and occasional outsiders who hold large amounts of equity in the company. Any one of these stakeholders has the power to disrupt decisions or introduce new ideas to the company.
• Direct Management
  Some Stakeholders can take over certain departments such as human resources or research and development to micromanage the business and insure success. In privately owned and publicly traded companies, large investors often directly participate in business decisions on the management level.
• Investors
  Stakeholders are regarded as large investors, who will either increase or decrease their stakes in your company according to your financial performance.
• Corporate Conscience
  Large stakeholders are generally high profile investors, and would like to steer clear of companies that trample human rights and environmental laws. They monitor your company's outsourcing activities and globalization initiatives, and may vote against your business decisions if they are deemed harmful to the company's long-term goals.

• Providing Expertise Stakeholdersarequipped with a wealth of knowledge on industry insight, historical background and current trends in the industry. Stakeholders may be professionals who are well versed with the technical skills regarding the projects. They may include lawyers, accountants, engineers and others. It is vital to involve all important stakeholders in gathering and documenting all the necessary requirements to avoid missing key deliverables. The more you employ expertise, the more you decrease chances of risk

• Managing Industrial Crises

  Industrial crises involving emission of chemical substances from industries to the environment are influencing the way governments regulate industries. The traditional government financial and regulatory policies for safety and health target more predictable and frequent events rather than unpredictable ones.

• Corporate Social Responsibility

  Stakeholders should continuously make sure that decisions they arrive at in the course of doing their project, do no harm to the society. They may decide to use an alternative resource if they realize that current resources are getting depleted. A firm may decide to use renewable resources where the local non renewable resources are at the verge of becoming extinct. Project stakeholders may also choose to initiate projects that are beneficial to the entire local society. For example, project stakeholders may start a scholarship program to fund the education of bright needy students from the area as a way of giving back to the society. Stakeholders can donate funds to a nation that is in need such as the third world countries.

• Conclusion

  The above observations clearly show that stakeholders play a key role in determining the performance of a company. However, the responsibilities of stakeholders in a company are not limited to the above roles. In many companies, stakeholders may invest, grant project assurance if they are actively involved.