Question

identify the Responsibilities of stakeholders in company performance?

identify the Responsibilities of stakeholders in company performance?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The company basically performs after being influenced by all Stakeholders. Stakeholders is a Broader term as it does not involve only shareholders but others who effect the performance of the company as well in various ways. Example of stakeholders as well as their responsibilities towards company's performance are as follows:

INTERNAL STAKEHOLDERS:
Investors- Investors are what give the company it's powers to perform by contributing to it's funds. A company irrespective of what business it is in needs funds to carry on, which it can raise from those investors or shareholders who invest their money in the company in exchange of ownership shares in it giving them voting rights and allowing company to perform its activities in order to achieve it's pre-determined objectives
Board of Directors- Even though investors invest in the company, they cannot be involved in each and every activity of it's functioning so they themselves appoint a group of individuals also known as Board of Directors who operate the company's performance and take necessary decisions. Board of directors is answerable to shareholders but is responsible for steering the company and making sure the company performs as it was intended to do so to achieve it's objectives.
Employees- Employees are life blood of business and the performance of employees is directly linked to performance of company as a whole. So therefore employees should themselves work with goals of company in mind and accept them as their own goals because company's accomplishment of it's objectives will ensure accomplishments of employee's individual goals as well.

EXTERNAL STAKEHOLDERS
Competitors-
The performance of business is very closely linked to performance of it's competitors . Company closely watches it's competitors and studies it's activities and decisions because that gives company incentive to perform with the goal of acquiring larger market share and overcoming any competitive pressure in the market.
Creditors- Company needs to maintain good relationship with suppliers so that it can perform it's activities smoothly without any interruptions. Credit given by suppliers helps company by reducing it's burden of making immediate payment for inputs giving it time to recover necessary funds and pay them off within the time of credit period. Performance of company is stable because of credit policy of suppliers and creditors.
Environment- Society is responsible for providing inputs to company needed for production purpose as well as purchasing it's output so that it can maintain smooth and profitable level of performance. Society gives company the right to exist and company's better performance ensures betterment of society as well

From above we see that company cannot perform in isolation and needs to interact with it's stakeholders to ensure it's smooth performance. Company is as much responsible to Stakeholders as stakeholders themselves are to company performance.

(If you have any questions. Kindly let me know in comments)

Add a comment
Know the answer?
Add Answer to:
identify the Responsibilities of stakeholders in company performance?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT