The Business, Government and Society Relationship of P&G

3210 Words Nov 11th, 2008 13 Pages
CATALOG
ABSTRACT 2
INTRODUCTION 3
PURPOSE 5
1. The Stakeholder Model Theory 6
2. P&G’s Stakeholder Model 8
2.1 Sustainable Development psychology 8
2.2 Economic Development 9
2.3 Environmental Protection 10
2.4 Government Relationship 10
2.5 Caring for Community 11
2.6 Consumer 11
2.7 Business Partner 12
2.8 Employee 12
2.9 Industry Associations 12
2.10 NGOs 13
2.11 News Media 13
3. Summary and Conclusion 14
REFERENCES 15

THE BUSINESS, GOVERNMENT AND SOCIETY RELATIONSHIP OF "P&G"

ABSTRACT

Stakeholder model is important for a successful company that pursues sustainable development. Most of the companies do not know how to implement the stakeholder model even though they have described the different aspects of the stakeholder model.
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1. The Stakeholder Model Theory
The stakeholder model was researched broadly in these years due to the importance of the decisions taken by the firm for different stakeholder groups (E. Jansson, 2005). Stakeholder is an entity that is benefited or burdened by the actions of a corporation or whose actions may benefit or burden the corporation (Steiner/Steiner, 1985). Clarkson (1995) distinguishes between primary and secondary stakeholders. The primary stakeholders include stockholders, customers, employees, communities and governments. The secondary stakeholders include earth’s biosphere, religious groups, political parties, unions, creditors, political interest groups, trade associations, suppliers, competitors, media, educational institutions, future generations and the poor.

Managers do not find it difficult to understand the concepts and models of stakeholder management. (Clarkson, Max B E, 1995) Stakeholder management is increasingly a key factor for improving business performance (Rienk Goodijk, 2003). Managers can no longer be held responsible for maximizing returns to shareholders at the expense of other primary stakeholder groups. (Clarkson, Max B E, 1995) Sillanpa (1998) found that companies which delegated more to their employees provided better service to customers, faster innovation and faster reactions to changes, increased productivity and competitiveness. Many companies have tried to apply the

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