The stakeholders

Résumé du document

In 1916, the car manufacturer Ford made enormous productivity gains. It decided not to give the shareholders with profits enormous dividends, but chose to increase the wages of employees, and to decrease the price of its cars in order to develop its market. Three years later, the supreme yard of Michigan agreed with them. Though justice gave a disadvantage to Ford, history gave back its grace through Freeman's stakeholder concept in 1984, 'A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objective' . Freeman's stakeholder concept changed the perception of the environment by managers, and, extended a new field in the corporate strategic management. The Corporate Social Responsibility (CSR), which is a key success for a firm which wanted to develop on a long-term activity and get a stakeholders value instead of a shareholders value. Firms have to develop economic, legal, ethical, and philanthropic responsibilities, economic being profitable, legal by obeying the law, ethical by being an ethic and philanthropic by being a good corporate citizen.

Extraits

[...] They include employees, customers, suppliers and shareholders. Secondary stakeholders are those who have a public or special stake in the organization. They are environmental and social activists groups, community and governments. In both parts I will identify stakeholders' expectations to discuss how the strategy of an organisation might be affected when stakeholders pursue them. For that, I will illustrate my essay with examples of true extracts and I will try to give recommendations for corporate strategy Primary stakeholders and the organisation 1. [...]

[...] So Renault created an automobile school which enabled the training of people from Curitiba in Brazil. Like that Renault benefits from good relations with its communities and efficient resources for its future production Government See appendices The government is dissociated with the local government and the government of state. Their interests in the same cases will take into consideration the organisation's strategy. But how do companies manage pressures that come from multiples governments? Local governments can have various interests with a company. For example, St-Alban[6] is a company that makes gas water. [...]

[...] Primary stakeholders are essentials to the company because they are both bound by transactions. Corporate strategy has to get long term relations with stakeholders: efficiency of employees thanks to career development, formation or working conditions; satisfaction of customers thanks to products and service value, customer's service or Internet; suppliers represent the source of production of the firm, so firm expectations are the quality and flexibility of suppliers. Suppliers also have legal responsibilities about their subcontractors. Shareholders are included more in the decision of the CSR strategy and put pressure demanding much corporate transparency. [...]

[...] So what expectations are taken into consideration by whom? The strategy of suppliers is based on the nature of the relationships between the company and the suppliers: relationships will be more efficient as suppliers will establish with the continuity of business. Power of the company will depend on the concentration of companies that carry out the same activity, the size of the company, etc. The main theory in corporate strategy is to establish a new type of contract with its suppliers making long-term relations. [...]

[...] Justice is a real cost and it can be really expensive for a firm. For example conflicts about tobacco or oil slick. That is why certain shareholders put pressure on the strategy in order to avoid these types of phenomenon. Firms are starting to have more attention on environmental factors. For example they reduce their cost of production economizing necessary energy for the fabrication of products. Firms can take competitive advantage when there are able to anticipate expectations of their stakeholders such as the reduction of toxic gas emissions. [...]