Question

In this assignment, you will write a minimum two-page paper that explains the treatment of internal and external stakeholders Instructions: In your paper, you will address the following points:  Which (internal or external stakeholders), if either, is more important?  Why do you feel this to be true?  Research and describe one organization that does a great job treating internal stakeholders.  Research and describe one organization that does a great job treating external stakeholders. a great job treating external stakeholders Requirements:  Length: a minimum of pages two, not including title or reference pages  Must use a minimum of two resources

Answer 1

STAKEHOLDERS

Any individual, organisation, social group or society that has a stake in the business or project are known as stakeholders.

Stakeholders can have considerable affect and influence on decision making process in the organisation regarding the finances and operations of the organisation. Examples of stakeholders are employees, customers, investors, creditors, government etc.

TYPES OF STAKEHOLDERS

INTERNAL STAKEHOLDER:-  Internal stakeholders are those entities that participate in the management of the business. It refers to people or parties within the organisation. The success or failure of the business has a direct impact on the internal stakeholders. The activities, performance, decisions and profitability of the company highly affect them. The following are the list of internal stakeholder:-

• EMPLOYEES:-  The person or group of person who works for the organisation for remuneration are known as employees.
• OWNERS :- The individual or group of individuals who owns the company such as partners, shareholders etc.
• BOARD OF DIRECTORS :-  They are the group of individuals elected by the members of the company at the annual general meeting and governs the incorporated entity.
• Managers:- The person or individual who manages the whole department such as sales manager, HR manager etc.
• Investors :- The person or group who invest their money in the company are known as investors.

EXTERNAL STAKEHOLDERS:- External stakeholders are those individuals or group which are indirectly affected or can get affected by the work of the company. They do not participate in the management of the business but influenced by the activities of the business. In order to know about the performance, profitability and liquidity of the business, they uses financial information of the company. The following are the list of external stakeholders :-

• SUPPLIERS :- They provide inputs such as raw materials, equipment etc. to the organisation.
• CUSTOMERS:- Customers are one who is going to consume the product or service of the organisation. They are regarded as the king of the market.
• CREDITORS:-  The individual, financial institutions or banks that provide funds or financial assistance to the organisation.
• Competitors:- The rival companies who compete with the organisation for market share as well as resources.
• SOCIETY:-  Every organisation has a certain responsibility towards society.
• GOVERNMENT:- The activities of the organisation is guided and regulated by the rules and policies formulated by the government.

IMPORTANCE OF STAKEHOLDERS

In my opinion both the stakeholders are important for smooth functioning of the company. Both the stakeholders are equally necessary so that the organisation can work efficiently and effectively.

• The actions of the stakeholders determine the outcome of the business.
• The internal stakeholder helps in the decision making process of the company.
• The purpose of the company is to create customers. Without loyal customers the company cannot compete with its rival and survive in the market.
• The company needs to collaborate with its suppliers, distributors etc. to run the business.
• For a business to succeed, they must compiled by the rules and regulations formed by the government.

SONY AND ITS TREATMENT OF EXTERNAL STAKEHOLDERS

TOWARDS CUSTOMER

• Improvement in the quality of the product
• Offer better sales and services
• Safeguards customer's personal data
• Promote communication with customers

TOWARDS SOCIETY

• Discloses environment data honestly and properly
• Prevent environmental accidents
• Promote art and culture and social activities
• Provide aid to disaster areas

TOWARDS SUPPLIERS

• Procurement of supplies through fair process
• Comply with rules and law to facilitate fair trade
• Take care of and support suppliers
• Fair price

TOYOTA AND ITS TREATMENT WITH INTERNAL STAKEHOLDERS

TOWARDS SHAREHOLDERS

• Boost corporate value and enhance communication
• Distribute return to its shareholders
• Develop business proactively
• Promote investor relation

TOWARDS EMPLOYEES

• Ensuring safe and protected workplace
• Respect human rights
• Development of a motivating work climate
• Supporting health management of employees
• Providing reliable employment opportunities