Stakeholders Of A Competitive Company

Decent Essays
According to Edward Freeman, stakeholders are anyone that has a stake or claim on the firm, including suppliers, customers, employees, stockholders, the local community, and management. Every corporation has stakeholders, and they are the individuals or groups of people who are benefited or harmed as a result of the operations of a company. Stakeholders are also crucial for the survival and success of a firm. In addition, a corporations competitors can also be viewed as a stakeholder, because they may have a potential claim on the firm. A corporations competitors are only considered stakeholders in the wide definition of a stakeholder in Freeman’s theory, while all the other stakeholders are included in the narrow definition (2014, pp. 263-267). Stakeholders have a special relation to the survival and success of a firm, and each stakeholder varies in the way they guide the corporation into the future. Stockholders, or owners, provide corporations with capital, and their funds are needed for the corporations operations. Suppliers provide corporations with the materials that are needed for production. Employees provide their time and knowledge, completing day-to-day tasks that must be done, whether it be administrative duties or making the products a company produces. Customers exchange their money for the products a company sells and create a demand for those products. Lastly, the local community provides a place for a corporation to set up its operations and gives them
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