Stakeholders and its management

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Stakeholders are all those who are affected by or can affect the activities of the firm. They can be from within or outside of the organization. Each Stakeholder has a different criterion of social responsiveness based on their specific interest (or stake) in the organization

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The Stakeholder View of the Firm

Responsibility toward customers/consumer

It has been widely recognized that customer satisfaction shall be the key to satisfying the organizational goal.To understand needs and wants of the customers.To improve the efficiency of functioning of business so as to ….

Increase productivity Reduce prices Improve quality and services Smoothen the distribution system

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Cont…

To undertake, to improve quality and introduce innovative product.To supply goods at reasonable price.To provide required after sale services.To ensure product has no adverse effects on consumers.To avoid misleading customers by improper advertisement.To provide sufficient information about product

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Responsibility toward employees

The successful organization depends to a very large extent on the morale of the employees.The payment of fair wagesThe provision of best possible working conditionsThe establishment of fair work standards and normsThe provision of labour welfare facility.Arrangement for proper training and education of the worker.

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Cont…

Reasonable and proper chance for promotionProper recognition, appreciation and encouragement of skills.The installation of efficient grievance handling system.An opportunity for participation in a management decision.

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Responsibility toward OWNERS/INVESTORS

A fair and responsible return on the capital invested by themA part in profit or bonus payment schemePolitical and economical security for investment through stable govt. law Knowledge about the working of a n enterprise.Fair amount of dividend or retained earnings.Voting rights

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Responsibility toward inter-Business

The social responsibility of business include a healthy cooperative business relationship between diff. businesses.Prevention of unfair and unethical competition and unfair interference in the rival’s business.Not to spread false rumors about rival’s product.Not to show unethical advertisement.Not to create artificial scarcity.Businessman should adopt better designs, good advertisements, quick and safe delivery with after sale services, reasonable prices.

Responsibility toward the state (Government)

It will be a law abiding citizen.

It will pay its dues and taxes other state fully and honestly.It will not purchase political support by unfair means;It will sell his goods, commodities and services without adulteration at fair and reasonable prices, andIt will maintain fair trade practices and refrain from activities like restraint of trade

Responsibilities Towards the Community

Major areas where business can and does contribute towards community welfare Taking appropriate steps to prevent environmental pollution and preserve ecological balance.Rehabilitation of population disabled by the business.Assisting in over all development of locality.Taking steps to conserve scarce resourcesImproving the efficiency of business operation.Contributing to R&DDevelopment of backward areas

In the field of Industry

Industry/business can help rural areas by introducing ‘self-help’ and ‘earn-while-you-learn’ programmers.

Carpentry, pottery, spinning, weaving, agro-based industry, farming, dairy farming, poultry and pig rearing, storage, etc., so that increasing employment could be provided in rural areas.

Identification of areas needing improvement, facilities, skill requirements and financial assistance may be surveyed by business experts.

In the field of Agriculture

To provide full-time employment to the vast unemployed rural labour force.

Providing facilities for irrigation, water supply and actual supply of fertilizers, seeds, pesticides, expertise, and finances.

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Housing Facilities

Business can, play its role in changing house-building, extending loans and financial aid facilities, providing material and manpower support

Transportation

Development of cheap public transport and distribution systems through improved journey planning and traffic regulation, increased operational efficiency and utilization of road capacity.

Health and Education

Business organizations also hold a responsibility towards improvement of the quality of life the people in the community.

Providing water sources for drinking and bathing, improving sewage disposal system, cleaning dirty areas of the solid waste, reducing pollution, improving sanitary facilities.

Reduce preventable and water-borne diseases.

They can also distribute free medicines, nutritious food to school-going children and pregnant mothers, the aged and the sick.

Holding of open camps for operation of minor ailments, eye diseases, family planning

Industrial Aid to Education in Urban Areas

5 forms of educational aid

1. Cash contribution to educational institutions;

2. Scholarship and loans to undergraduate students;

3. Contribution of material and equipments to educational institutions;

4. Teaching aids for students and teachers;

5. Contribution of company manpower;

Social Audit on Factual Assessment

‘social audit’ means a comprehensive evaluation of the way a company discharges all its responsibilities to shareholders, customers, employees, community and the government.

Towards Input Suppliers

Providing technical know-how and assistance

Providing fair price

Assuring continuous purchase of inputs

Helping them in expansion and development

Towards Bankers and Financial Institutions

Providing correct data and information for project appraisal

Prompt payment of interest

Clearance of the principal amount on or before due date

Towards Market Intermediaries

Providing products quiet in advance

Providing freedom to have price margins

Taking back poor quality products

Training the personnel

Providing freedom in promotional programmes

Green management

MRF tyres

HUL

Jet airways

Amway

Nokia