Question

1. Conduct a stakeholder analysis for the following three (3) major stakeholders of AGL Australia (Community, Customers, Employees). For each major AGL stakeholder:
   1. discuss their specific and various interests with respect to AGL; and
   2. conclude whether their specific interests are generally aligned with (or opposed to) the generation of shareholder value by AGL, providing supporting reasons for your conclusion

Based on the AGL australia financial report 2018-19

Answer 1

A. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. They include: Owners who are interested in how much profit the business makes

Specific and various interest of 3 major stakeholders are as follows:

1. Community: a. Brand reputation, relationships with Goverment, regulators, local communities, non-government organisations, unions, supply chain and partners.

2. Customers: Customer accounts, Custoemr relationship quality

3. Employees: Employees, safety culture, organisational culture and values, diversity and inclusion capabilites and skills

b. The following are the reasons by which it can be concluded that the specific interest of the major stakeholders were aligned with the generation of shareholder value by AGL.

1. Community: AGL strives to make a net positive social, economic and environmental contribution to the communities in which they operate. In a highly regulated industry such as the energy industry, government decisions have a significant influence on the way they source, produce and price energy and energy-related products, and the way in which they interact with and support theircustomers. AGL‘s Reptrak score declined since FY18. The drop in AGL‘s reputation over the past year has been driven by declining scores on three important dimensions of reputation – leadership, workplace and citizenship. This decline in reputation was consistent with scores across the energy industry as a whole. Their involvement in public policy development is undertaken transparently and consistently.We invest in the communities in which we operate through local procurement, local employment opportunities, a structured program of community investment, and opportunities for AGL employees to volunteer with charitable or community-based organisations. AGL‘s contribution to the community increased in FY19.

2. Customers: The company is focusing on developing products and services that minimize customer's energy costs and improve the transparency and clarity if their energy bills. They understand that energy costs can comprise significant component of individuals and business expenses. In an effort to help relieve costs AGL delivered lower standing offer electricity prices for residential and small business customers in all markets. We can say that the specified interest if the customers are alligned as there is fall in the no. of complaints during the present FY by 2% when compared to the previous FYs. The no. of customers on staying connected has also increased from 26,657 to 30,083 also there is fall in the average level of debt of customers on staying connected. The total no. of customers accounts have increased from 3.641m to 3.708m in the present year.

3. Employees: During FY19 we focused on implementing theAGL LifesavingRules across the business to establish clear expectations of our people. This includes rolling out Critical Control Checks as part of the visible leadership program, and developing an AGL-wide Safe System of Work framework that provides guidance on permitted and non-permitted work on-site and the minimum risk controls required.We are committed to ensuring our corporate governance framework, policies and practices reflect a high standard of ethical behaviour. The AGL’s new purpose and values on 1 July 2019 will drive work in FY20 to continually embed the purpose and values into employee experiences, before launching them to the customers and the community. Equality, particularly gender equality, will also be a focus in FY20. This includes recognising that operational sites have specific needs and priorities and has driven the establishment of separate work streams to focus on gender equality at AGL’s sites. AGL achieved a six percentage point improvement in employee engagement scores over FY19. AGL experienced an increase in the number of complaints relating to unacceptable behaviour in the workplace in FY19. After investigations were undertaken there were no substantiated material breaches of AGL’s Code of Conduct.