Describe Two Contrasting Businesses
Typical stakeholders in an organisation include:
* Employees: They want to keep their employment, good rates of reward and also promotional opportunities.
* Suppliers: They want to feel valued by the company and want frequent orders with prompt payments.
* Owners: In a company it would be the stakeholders. They are often thought to be the most important stakeholders as they have set up the business and invest a lot of time into it to make it successful. Owners want to see their share and the business capital increase.
* Trade Unions: These are group of employees who seek to secure higher wages and better working conditions for their members.
* Employer Associations: The same a trade unions but for the employers, representing the interests of employers in specific industries.
* Local/national communities: The actions of businesses can have dramatic effects on communities. E.g. on the 16th of January 2008, Total was required to compensate all of the victims of the pollution caused by the sinking of the ship Erika. They are required to compensate the victims in the amount of €192 million. This is in addition to the €200 million that Total spent to help clean up the spill. The company feels that the verdict is unfair because it wasn't their fault the ship sank. They will be appealing the verdict because it forced the users of the ship to also be the inspectors and not the people that made the ship.
* Governments: The government wants businesses to become successful, to create jobs and pay taxes. They want to see businesses to look after the welfare of society.
A business needs to take account of the interests of all types of stakeholders. These interests are linked. For example if Nike want to create shoes using carbon fibre, the price of shoes will increase.
The Shareholders of a company are very important; they belong to what is called the primary type of stakeholders. They want share value to increase; they want to
* Employees: They want to keep their employment, good rates of reward and also promotional opportunities.
* Suppliers: They want to feel valued by the company and want frequent orders with prompt payments.
* Owners: In a company it would be the stakeholders. They are often thought to be the most important stakeholders as they have set up the business and invest a lot of time into it to make it successful. Owners want to see their share and the business capital increase.
* Trade Unions: These are group of employees who seek to secure higher wages and better working conditions for their members.
* Employer Associations: The same a trade unions but for the employers, representing the interests of employers in specific industries.
* Local/national communities: The actions of businesses can have dramatic effects on communities. E.g. on the 16th of January 2008, Total was required to compensate all of the victims of the pollution caused by the sinking of the ship Erika. They are required to compensate the victims in the amount of €192 million. This is in addition to the €200 million that Total spent to help clean up the spill. The company feels that the verdict is unfair because it wasn't their fault the ship sank. They will be appealing the verdict because it forced the users of the ship to also be the inspectors and not the people that made the ship.
* Governments: The government wants businesses to become successful, to create jobs and pay taxes. They want to see businesses to look after the welfare of society.
A business needs to take account of the interests of all types of stakeholders. These interests are linked. For example if Nike want to create shoes using carbon fibre, the price of shoes will increase.
The Shareholders of a company are very important; they belong to what is called the primary type of stakeholders. They want share value to increase; they want to