Essay About Business Practice And Corporate Governance

Stakeholders
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Stakeholders
A stakeholder or stakeholders, as defined in its first usage in a 1963 internal memorandum at the Stanford Research Institute, are “those groups without whose support the organization would cease to exist.” The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). A corporate stakeholder can affect or be affected by the actions of a business as a whole.There are different kinds of stakeholders to an organisation. The stakeholders can be internal and external. Internal stakeholders include employees and shareholders while external stakeholders are customers and government. These stakeholders are very important for any company or organization. The determine the working of the organization. It is important for an organization, a company or a firm to deal manage the stakeholders needs in such a manner that all the stakeholders are satisfied and work in the favor of the organization, company or firm. To keep all these stakeholders happy and satisfied is an art and requires lots of efforts. It requires the person to take all these people together as a whole. One needs to identify the motives that drive each person to work positively and channelize them in such a manner that overall benefit is transferred to an organisation, a company or a firm. In order to run a successful business entity, one must take the stakeholder aspect in to consideration.