stakeholders - interests and power Common and conflicting interests of stakeholders The different stakeholder groups have different interests some in common with other stakeholders and some in conflict. Examples of common interests: * Shareholders and employees have a common interest in the success of the organisation. * High profits which not only lead to high dividends but also job security. * Suppliers have an interest in the growth and prosperity of the firm. Examples of conflicting interests * Wage rises might be at the expense of dividend. * Managers have an interest in organisational growth but this might be at the expense of short term profits. * Growth of the organisation might be at …show more content…
Levers operated by connected stakeholders * Shareholders have voting rights and can sell shares thus making the company vulnerable to take over. * Creditors can refuse credit, charge high interest rates, take legal action for non-payment and, in extreme cases, initiate moves to liquidate the company. * Suppliers can refuse future credit. * Customers can seek to buy goods/services elsewhere and enjoy consumer protection rights. Levers operated by government & pressure groups The government can exert influence through taxation, government spending, legal action, regulation and threatened changes in the law. Community and pressure groups can exert influence by: * Publicising business activities they regard as unacceptable. * Political pressure for changes in the law * Refusing to buy goods/services fro named firms * Illegal actions such as sabotage Stakeholder analysis “All animals are equal but some are more equal than others” [George Orwell, Animal Farm] Inequality of influence: It is naïve to believe that the stakeholders have equality in terms of power and influence. Managers have more influence than environmental activists. At the same time the institutional investor with 25% of shares will have a greater influence that the small shareholder. Banks have a considerable impact on firms facing cash flow problems but can be
Most people want to be equal, in order for this to happen, people need to have equivalent rights and opportunities. When someone tries to manage a society, they often need some form of equality to keep everything in order. In the allegorical novella, Animal Farm, George Orwell shows that equality is essential for a society to thrive. He shows this through life being better when the power is balanced between Napoleon and Snowball, how the life of the animals becomes harder when the pigs have more power, and when Napoleon has all the power, life becomes just as poor as when the humans were in control.
This theme in Animal Farm can also be looked as people being equal, but some are more equal than others because sometimes that is how certain people see others. Just because they’re different they don’t get the same treatment as others.
In the first major paper on stakeholder theory, Edward Freeman and David Reed state that a stakeholder is "Any identifiable group or individual on which the organization is dependent for its continued survival." (Freeman and Reed 89) Given that these groups' input are all vital part of an organization's success, creating solutions that benefit all stakeholders is important for long term success. Solutions that conflict with the interest of one of the stakeholders, could result in that stakeholder withdrawing the support that the organization needs to survive. When leaders of an organizations are servants first, when they "make sure that other
Creditors have tried to pierce through this concept of a company being a separate legal entity. However Courts are very reluctant to let them do so unless there is evidence of fraud or a sham.
“All animals are equal but, some are more equal than others” (Orwell, 90) were the words of the pigs in the novel Animal Farm by George Orwell. Although the animals hated the humans, after the rebellion things started to change and the animals started liking humans.
Animal Farm is a political satire it is also a fable, complete with talking animals. In the novel, the the animals of Manor Farm rebel against the cruelty of Farmer Jones, at first the animals in Orwell’s novel work fairly well together soon the pigs usurp power over all the other animals. “All animals are equal but some animals are more equal then others” the pigs post this proclamation on the barn, it’s the most famous quotation from Animal Farm.
Although the stakeholder interest is criticized for conflicting with other who are not stakeholders, it is still a valuable theory that should be valued by all businesses. Businesses would be able to establish a network with everyone that it communicates with. The people they build a relationship with could help the business in the long run when making difficult decisions that could put the business at risk of selling products that could harm
It ran: All animals are equal, but some animals are more equal than others.” (Orwell 133) This quotation is one of the most important in the book, demonstrating all of the major themes Orwell attempted to create. The pigs infer that they are more equal than the other animals, but saying something is ‘more equal’ does not make sense. This quote shows the social structure and inequality now prevalent on the farm, gone unnoticed because of the pigs’ clever use of language and the corruption of power and minds.
As human beings, when we were young, as little childish kids, there were countless occasions we yell out “it is not fair” to others in order to express our dissatisfaction towards a certain incidents. As we grow up, we know “fair” through our pre-school education as sharing things equally among people. As we grow older. we know “fair” through the proclamation in The Declaration of Independence as “all men are created equal.” We as lawful human beings with morals, always try to be as equal as we can both in the past and the time afterwards. Hence, there is the American Civil War, fighting the rights for the blacks; there is the Russian Revolution, throwing the Imperial Government; there is the French Revolution, having the slogan of “Liberte, Egalite, Fraternite(Liberty, Equality, Fraternity).” However, many realize after many years that complete equality seem unreachable and the utopian societies that are being promised are often just foams—vague and unreal. Consequently, George Orwell, a renowned English Arthur published the book “Animal farm,” using the world of animals as an example to unravel this truth for others. In “Animal Farm,”
25. A number of European countries require public companies to include employee members on their boards of directors, so: A. The employees are available to answer questions. B. Management does not have to attend the meetings. C. That their interests will be explicitly represented. D. They have more power than any other stakeholder. 26. Stakeholder groups can include: A. Stockholders. B. The media. C. Environmental activists. D. All of the above. 27. Which one of the following is considered to be a nonmarket stakeholder of business? A. Customers. B. Media. C. Creditors. D. Stockholders. 28. Which of the following is not considered to be a nonmarket stakeholder? A. Government agencies. B. The natural environment. C. Activist groups. D. Non-governmental organizations. 29. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: A. Role sets. B. Primary Stakeholder(s). C. Ownership Theory. D. None of the above. 30. A stakeholder analysis: A. Creates equality among all stakeholder interests. B. Allows managers to examine two primary questions. C. Involves understanding the nature of stakeholder interests. D. All of the above. 31. The four types of stakeholders' power recognized by most experts are: A. Voting,
George Orwell’s quote – “All animals are equal, but some animals are more equal than others” is nonsensical and relates to the book. Being equal means for everyone to be the same so there cannot be more or less equal. To understand Orwell’s quote is to think that all animals are equal but some animals benefit from that equality (Napoleon).
Each organisation has a unique external and internal environment that has unique impacts on the organisation. A stakeholder’s analysis categorises that environment determining whether an organisation or a person has any low or high interest and power over the business. Based on The Asda Wal-Mart case study, stakeholders are consecutive:
Stakeholders are either a person or a group of people that hold an interest in the business; this could be an interest in the product or services, or the operations of the business. There are different types of stakeholders, this include the employees of the business, the customers, the suppliers, the owners, local people, the government and the trade unions. Stakeholders have a huge influence on business, they can change a lot of the operations if they are unhappy, and the business must make an attempt to fulfil their wishes to have an effective company.
As you identify your stakeholders there is realisation that some of these may have the power to block or advance, some may be interested in the project and some may not care about it.
Stakeholders can “construct ‘visions’ of, and ‘pathways’ to, sustainable futures – that reflect their experiences, views and concerns (Whitmarsh, Swartling, Jäger, 2009). So Group one strategy, mission and vision are based on the performance and factor of all the stakeholders. Let’s say one of its supplier Toyota is claiming that it is the best in industry car in its price segment then all the marketing and sales strategy for this particular car will be depend on the statement give by the Toyota, it this Toyota statement falsify the then its strategy can be hampered. So for the business all stakeholders are the equal