Question

Who are the stakeholders what can they do to protect their own interest?

Answer 1

Stakeholders - Stakeholders are persons who are directly and indirectly interested in the organisation. Stake holders can also effect the functioning of the organisation

Examples of stakeholders - Customers, Suppliers, Government, General Public, Banks, Financial Institutions, Investors etc.

Stakeholders interest are directly concerned with how they benefit by the way organisation functions .

For example - Customers with high quality of goods, Suppliers with timely payment, Employees with good compensation, Investors with goods return on investment etc

So how can stake holders protect their interests ..??

A ) By changing the composition of board - Board of directors are the high level management of the organisation, Share holders can elect the board in general meetings etc. There by selecting the competent board the share holders can have a good return on income and good corporate governance.

B) Through government and regulatory authorities - Every business is guided by various laws and regulations. For example when the customers find that the goods are of low quality and if they were heavily price they can approach the relevant authorities. Government also regulated the entity in the best interest of share holders

C) In General Meeting through voting rights - Any major decision taken by an entity has to be approved by the shareholders who were the real owners of the entity. Hence shareholders can exercise their rights inorder make the company perform better by exercising their voting rights.