Question

Name another company in the same industry as General Electric (GE) that provides benefits to multiple stakeholders, and briefly explain who those stakeholders are and how they benefit.

Answer 1

Another company that belongs to same industry is United Technology Inc. The company is involved in heavy engineering business and manufactures various kinds of products in different areas like aircraft engines, aerospace system etc. Due to the size of the company, it is obvious that multiple stakeholders will be involved in the business and its growth and prosperity will directly affect those stakeholders in an effective way. The company employs more than 2,40,000 employees around the world and is one of the biggest company in terms of its size. The various stakeholders involved and the benefit they got is laid down as follows:

• Social stakeholders (Employees,Customers,Society): The company provides direct employment to 2,40,000 people around the world. The company has a separate policy for health and human rights of employees who works at the company, along with ensuring their commercial success through promotions and adequate remunerations. The company has a HR management programs which ensures that employees are aware of health, human rights etc. The company makes regular contributions for various social causes through its CSR initiative which helps community in a big way. The aim of the company is to provide high quality competitive goods and services to its customers in the longer run. Thus, social stakeholders benefits a lot through company and its business policies.
• Environmental (Natural environment and natural resources): The company focuses on its external natural environment and resources through its stakeholders policy with an aim to enhance its corporate image and benefit the environment with its actions overtime. The company makes strategy to ensure minimum impact on natural environment and best possible use of its resources which is taken from the environment itself. Through enhanced productivity of resources and minimum impact on environment, the company is benefiting stakeholders in an effective way. The product design and promotional strategy of the company is made by keeping in mind the environmental expectations.
• Governance (Investors and government): Investors are the direct beneficiary of company's growth and are responsible for funding requirement of the company in longer run. The government has interest in the workings of company so as to collect necessary tax from it, the government also has to make sure that company is not violating any social and legal rules that are prevalent in the region. In order to fulfill these requirements, the company protects these stakeholder's interest by focusing on maximizing profits through technological innovation in its business. For example, the CSR initiative of United technology aims to strengthen its brand image as well as reputation at global level, which will make it easier for them to penetrate in the necessary target markets in the longer run. Through higher profits, government will get their share of high taxation and investors will get benefits in the form of higher growth of the company and rich dividends.