Question

Think very carefully and create an imaginary situation in which you are the CEO of a major automobile organisation. You need to engage with stakeholders so that a project you are planning can be successfully initiated and completed. Provide detailed answers to the questions below.

✴ What methods did you use for 1) engaging stakeholders?

✴ What methods were successful/unsuccessful and what were the reasons for this? What was done to overcome these difficulties?

✴ How did you decide when to involve stakeholders?

✴ Were there areas of conflict in the project and how were stakeholder engagement methods used to overcome these?

✴ What was the overall impact of stakeholder engagement and how did you assess this? Were the aims and objectives met?

✴ What would you have done differently to improve outcomes?

Answer 1

1.

Private and public company owners are shareholders. Public corporate shares trade in limited bursaries. Shareholders elect a director of the company who appoints and supervises senior executives. The share price reflects the shareholder interest level in a firm and the extent to which management is able to meet the expectations of shareholders.

By being good company citizens, which include caring for the societies in which they operate, corporations will affect and draw shareholder interest. Corporate citizenship also means that the interests of shareholders must be prioritized by directors and executive officers. One approach is to merge executive compensation with share prices.However, this approach risks encouraging short-term decision-making to impact share prices if management focuses on the long-term value of shareholders. Strict policies on conflict of interest and the role of independent directors in determining executive salaries are other ways to influence and protect the interests of shareholders.

By providing a realistic profit and satisfying or overcoming these estimates, companies can influence shareholder interests. Sustainable revenue and profit growth in stock markets tend to reward businesses. In the interests of shareholders, dividends and share purchases also apply. Dividends are regular cash dividends from after-tax profits of a business, while buybacks are repurchases of existing market shares. Such practices give cash back to shareholders, but management may also use some of the excess cash to buy or reinvest other companies in the business.

Corporate transparency is critical because investors need accurate and detailed financial decision-making information. To order to make the businesses open, regulatory requirements compel them to some degree because they must report annually and inform investors publicly of material changes to their conditions of operation. Shareholders typically reward companies transparent and responsive to their business prospects and risks in quarterly conferences and other public communications. The stock market doesn't like surprises, including sales and profits that are lower than expected.