What Is The Stakeholder Theory Of Nike

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A stakeholder is an individual or association who can affect or be affected by the business’s activities. They might have neither direct nor indirect interest in the firms. Form a decent connection between stakeholders and firms is vital because stakeholders can contact with the firm very often or just in emergency situation to get up to date with the activities of the business. In one way or another, the reputation of stakeholders are influenced by every activities of the business, therefore, businesses ought to settle ethical decisions for a good image in the society.
There are many stories about how stakeholder theory has been approached lately from 1990s till now and there is a featured story about Nike contract companies in Vietnam. In Nike’s case, the affected group of stakeholder is employees of the company. This essay will illustrate the concept of stakeholder theory, analyse the case of Nike’s contract company and how the
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A corporate stakeholder is a person or group that can affect or affected by the actions of business (Boundless, n.d.). There are two broad groups of stakeholder, internal stakeholders and external stakeholders. Internal stakeholders are parties who directly involved in the activities of the firm such as owners, managers and workers. External stakeholders are people outside of the business for example are customers, suppliers, creditors, government and the society. (BBC, n.d.) (Boundless, n.d.). Further more, different stakeholder has its own interest in the business, employees want their wage to increase, manager or owners want to maximize the business’s profit, the society wants products that help to develop the community and consumers want products that meet their demand. Through an overview, all the stakeholders have diverse impacts on the company and it depends on the approach of the
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