In: Accounting
Are stakeholders adversarial to the firm?
Stakeholders are definitely not adversarial. In fact managing stakeholders are the utmost responsibility of the firm. Because, the firm is running its day to day activities based upon its relationship with stakeholders. Stakeholders include Customers, Suppliers, Investors, Employees, Government and Shareholders. Customers helps the firm to increase the sales, suppliers helps the firm to provide quality and timely supplies, investors provide fund which ensure to carry its operations, employees make the day to day operation of business and keeps the business alive, government provide proper support to take business activities. Any adversarial relation with any of the stakeholder will increase difficulties against the firm only. And if the firm manages its stakeholders effectively and efficiently it will provide maximum returns to the firm only. It creates a brand image of the firm in the society. Thus, stakeholders in no way are adversarial to the firm.