Internal and External Stakeholders
1. Determine at least three (3) different internal and external stakeholders that Dr. Doright might have to deal with on a daily basis at the hospital. Discuss the duty of loyalty owed to each internal and external stakeholder.
(1) Shareholders: Shareholders have the right to attempt to influence the actions of management. They can do this by putting nonbinding proposals forward-called resolution-to be voted upon at annual shareholder meetings. In advance of each annual meeting, shareholders are sent form ballots listing the items that are up for vote, including membership on the board of directors, choice of an outside auditor, and resolutions brought by the board or shareholders.
(2) Board of directors: The board of directors has the right to vote the shares of those who neither appear nor return a completed proxy vote. Board members included to internal stakeholder and indeed Dr. Doright is president of the “Universal Human Care Hospital” which means he is the member of Board. Generally, board`s main roles are to serve as a check on management to protect shareholders and to approve or suggest revisions to the strategy. (www.ehow.com/facts_5S)
(3) Employees of hospital: Dr. Doright needs to protect employee right and compensation.
(4) Customers or patients: His primary responsibility is to advocate patients, make customer service best as well as he can. 2. Compare and contrast potential conflicts of interest that may exist between duties of loyalty owed to an internal stakeholder vs. an external stakeholder. (1) Shareholders want greater profit vs. employees want higher wages. (2) Managers want price rises to increase sales vs. customers want cheap price. (3) Employees need extra shifts vs. local community needs more
(1) Shareholders: Shareholders have the right to attempt to influence the actions of management. They can do this by putting nonbinding proposals forward-called resolution-to be voted upon at annual shareholder meetings. In advance of each annual meeting, shareholders are sent form ballots listing the items that are up for vote, including membership on the board of directors, choice of an outside auditor, and resolutions brought by the board or shareholders.
(2) Board of directors: The board of directors has the right to vote the shares of those who neither appear nor return a completed proxy vote. Board members included to internal stakeholder and indeed Dr. Doright is president of the “Universal Human Care Hospital” which means he is the member of Board. Generally, board`s main roles are to serve as a check on management to protect shareholders and to approve or suggest revisions to the strategy. (www.ehow.com/facts_5S)
(3) Employees of hospital: Dr. Doright needs to protect employee right and compensation.
(4) Customers or patients: His primary responsibility is to advocate patients, make customer service best as well as he can. 2. Compare and contrast potential conflicts of interest that may exist between duties of loyalty owed to an internal stakeholder vs. an external stakeholder. (1) Shareholders want greater profit vs. employees want higher wages. (2) Managers want price rises to increase sales vs. customers want cheap price. (3) Employees need extra shifts vs. local community needs more