The implications for the business and stakeholders essay
The owners of Sainsbury know that if everyday resources become scarce prices for the products will go up. In contrast, companies in the stakeholder model are more long-term orientated. Suppliers want their prompt payment. Stakeholder analysis The company was generating profit, for some time,. Recycling the supermarket wastes properly minimize the risks of rats and mice in the area of the store. Because of the dispersed ownership, hostile take-overs of corporations are very common and easy realisable for US companies, as well as is replacing the management KESTER Scandals at Enron, Global Crossing, ImClone, Tyco International and WorldCom, concerns about the independence of accountants who are charged with auditing financial statements, and questions about the incentive schema and investor recommendations at Credit Suisse First Boston and iMerrill Lynch have all provided rich fodder for those who question the premise of shareholder supremacy. Shareholders: A Shareholder is an external stakeholder. The owners often have to balance their own wishes against those of the other stakeholders or risk losing their ability to generate future profits e. In situation like the one described above the company is losing the customers, reputation and the profit at the same time so there will be less stakeholders willing to invest in the company and the existing ones will not be satisfied because they will not earn as much as the company promised. On 28th of April the Sainsbury spokesman stated that the company was confident that the bags were sourced ethically and that they will take all the actions needed in order to investigate it.
It is a value judgement that may differ in importance and meaning between different individuals. In my opinion, this situation had a big impact on the organisation and its stakeholders.
Amazon has many stakeholders with varying levels of interests in the organization. External stakeholders: Every single other individual and gatherings that have some claim on the organization.
The reason why Primark being unethical will damage communities is because a bad image will be building for representing or collaborating with the company. Disposal of waste safely and in an environmentally friendly manner.
The community also helps Primark with advertising has they give a word of mouth about their business and without the community, Primark has no trust. Companies in the shareholder model are in widespread shareholdings by many private individuals.
They are currently reducing their operational carbon by using solar panels in their stores and minimise their packing, keeping products healthy and fresh at the same time. Suppliers want their prompt payment. Accountable leaders are aware that mutual interactions benefit both communicators during a positive woven relationship.
Some examples of ethical policies are: Reduce pollution by using non-fossil fuels. It could lead to losing existing customers as they might not trust the company and their advertisements anymore.
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Adapting business behaviour
Words: , Paragraphs: 12, Pages: 6 Publication date: September 22, Sorry, but copying text is forbidden on this website! Social responsibility for one group can conflict with other groups, especially between shareholders and stakeholders. This way they are complying with the standards set out by the Government. Government — especially the Inland Revenue and the Customs and Excise who will be collecting tax from them. Carbon emissions influence negatively on the quality of our air and increase the greenhouse effect which cause weather changes and increase in global temperature. As we all know the environmental situation of UK and all the rest of the world will not get any better but people and organisations can do a lot to slow down the damage of the environment. Similar to the previous behaviour of the Sainsbury it is something that has to be practiced in long term. Stakeholder theory, when introduced in the s, signify a major change in how relationships within a business might coexist and benefit one another. The Air quality readings recently PM2. People are more likely to shop in the supermarket which operates ethically. They are very happy with that the supermarket is promoting and with the fact that they are helping them in meeting their objective.
Social responsibility for one group can conflict with other groups, especially between shareholders and stakeholders.
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