Question

list various stakeholders of an organization and describe how a firm responds to their concerns

Answer 1

Stakeholders of an organization are the groups to whom businesses are responsible to.

Various stakeholders in an organization are:

Employees

Customers

Society

Investors

Employees are the backbone of any organization. An organization reaches heights and expands when its employees are productive. Hence, it is the responsibility of the firm to ensure that the employees get a decent working environment where they can increase their productivity, gain new skills and contribute to the working of the firm. The firm should also ensure that the workers are in good health and benefits like vacations, insurance etc should be allocated to the workers. Job security and a discrimination free environment also is essential for the employees.

In any market, the customer is considered the king of the market. It is the customers who buy and demand goods, based on which the firm gains profits, pays the labor and other costs. Hence the firm has a responsibility towards the concerns of the customers. The firm should ensure that the good produced is reasonably priced, of utmost quality, is easily accessible. Also it should ensure that there is mechanism for the customers' feedback and the changes, if found essential should be done accordingly.

The next stakeholder is the society. Society consists of both the workers, their families and the customers and also the environment. In order to ensure that it is being responsible to the society, the firm should payback to the society. It could be in form of taxes , which help the economy develop or it could be in following ethical trade practices and ensuring that the waste generated or any such practices are not harming the environment. In recent times, this has become a crucial element in the functioning of firms. Nature is deteriorating and it is essential that firms are mindful of their contribution to a safe environment for the society.

The next important stakeholder are the investors. They invest in the firms and have confidence in its functioning. hence it is the responsibility of the firm to respond to its concerns by functioning ethically and responsibly ie not investing in high-risk projects or not recklessly investing. Also the shareholders should be regularly updated in regards to change in policies and should be considered in for changes in business patterns, expansions, etc by means of voting and other such referendum.

Hence for the smooth functioning of the firm, it is essential that the firm responds to the concerns of the stakeholders.

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