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Concept of stakeholder theory
Framework of rules for corporate governance
Stakeholder management case study
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According to Freeman (1984), he defined that stakeholder which is called as investor relation, is a group of people without whose support the organization would cease to occur and they are one of a group who are directly affect the survival and success of the organization. Based on Malaysia Code of Corporate Governance (MCCG), there is a communication between the company and the stakeholders to improve the understanding objectives and expectation. By communicating, stakeholders are able to make decision that have been informed about the business of the company, governance’s policies environment as well as the social responsibility. The best of practices in stakeholder are the boards have to ensure that there is always an effective, transparent …show more content…
Apart from that, the directors are dedicated in evaluating the information which is disseminated effectively to Maxis’ shareholders and other investing community (stakeholders). From this, Maxis has applied the code that stated in the MCCG. They engage and communicate which each other as it ensure the Maxis Group to understand their stakeholders and to take concerns into account when it comes to decisions making which has achieved the code stated in corporate governance through press releases, quarterly basis of financial results, announcement on Bursa Malaysia, and online Investor Relations section and online News Room where these can be assessed by shareholder and public via Company’s website.
Other extra information which Maxis also provide programmes to investor relations which are included non-deal roadshows, analyst sessions and attending investment conferences to the investment community. They will consistently meet with those major institutional investors and hold regular sessions with financial analysts to discuss business performance and
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For example they create a Maxis Ekelas where it is an education to the students who are studying in rural and urban poor areas of Malaysia. By doing so, there is not a barrier for them to access sufficient knowledge and experienced teachers. They were also involved in “Giving Back to the Community” – Deepavali Makeover project at SRJK (T) Ladang Kerling. There are more than 40 Maxis employees involved in the school and they help to refurbish the school as well as bring funs to student. Not to forget that they also had been involved in disaster relief which is called as Maxis Cares. It is a giving project where to speed up the restoration of communication service and they provided free minutes and SMS for customers in the affected area so that they can stay in touch with their parents or
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
Stakeholders are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers1. There are several different types of stakeholders associated with a corporation, and those stakeholders can have different views and opinions on what corporation's goals should be and how they should be running. I have interviewed three different stakeholders of Staples Inc., an employee, a customer and a stock holder, to find their relationship between them and the firm. Then, I will use this information to suggest how the firm should proceed and continue to have a better and more beneficial relationship with its stakeholders.
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
The non-charitable organisations objective embedded within its mission statement is to work with all its partners towards the attainment of the sustainable human development goals adopted by the world community and the realisation of the vision of peace and social progress enshrined in the Charter of the United Nations. UNICEF was created with the purpose of working with others to overcome the obstacles that poverty, violence, disease and discrimination place in a child’s path, thus advancing the cause of humanity.
Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing
When using performance management to improve an organisation’s productivity you need to first decide who is the focus of the organisation’s long term goals, are they focusing on Shareholders or Stakeholders. The Shareholder approach focuses on the profit to the shareholders, no other factors need to be considered aside from the bottom line profits. The Stakeholder approach is a well-rounded, balanced approach to management, considering more than just how much money the organisation makes.
Examples of Stakeholder’s could be: managers, directors, employees etc. It is based upon a conceptual framework approach in which it provides moral and ethical values to a business organisation. When in practice, majority of organisations are mainly going to focus on corporate social responsibility. The reason for this is because CSR is seen to have a big impact on the firm as many people are recognising that there is a increasing number of businesses that are both socially and environmentally friendly. On the other hand, if the government doesn’t intervene with companies in terms of both regulation and legislation, this means that firms will only be concentrating on the accounting figures. If companies are primarily focusing on the accounting figures, this indicates that businesses are not taking in the social and environmental impact of the activities within the organisation. In (Liu, Fellows and Tuuli, 2011), it refers to corporate citizenship values in which it considers and identifies the different demands of the stakeholder groups to see where the overall value of the company comes from taking into thought the environment and
UNICEF helps children get the care they need in the early years of life and helps families to educate girls and boys. It try’s to reduce childhood death and illness and to protect children in the middle of war or a natural disaster. UNICEF supports young people, wherever they are, in making decisions about their own lives, and try’s to build a world in which all children live with dignity and security.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.