Question

1. Why is it significant for companies to recognize and address the priorities and needs of different stakeholder groups?

2. Name another company in the Healthcare industry that provides benefits to multiple stakeholders, and briefly explain who those stakeholders are and how they benefit.

Answer 1

1. It is significant for companies to recognize stakeholders groups and offer them concern information. This is because one stakeholder sees financial information with one perspective which other looks the same with different perspective. For instance, shareholder look for higher profits so that higher dividends would be paid to them. Whereas, government looks profits as well. However, they look for good profits as it will maximize tax revenue for them.

2. United Health Group provides benefits to multiple stakeholders. These are employees, investors, patients, suppliers and government. Employees are given effective salaries according to their skill and experience. Investors are offered better dividends as revenue in 2018 reached to $226.2 billion highest in healthcare industry in world. Patients are treated well and thus, patient base has reached 115 millions. Suppliers offer materials required in healthcare at discounted rates and paid in due course. Government gets adequate tax and people's health is managed properly.