Assume you are a stakeholder in Post University. Next week, in all your courses,
ID: 2746444 • Letter: A
Question
Assume you are a stakeholder in Post University. Next week, in all your courses, you’re going to be asked to complete your student survey. Big deal… Why should your instructors care about what you have to say? Why should Post care about what you have to say? What difference can you, can any stakeholder make, by conveying your thoughts to the company you’re a stakeholder in? Is there a better way to reach for a result or action from the company? If you own the company, why should you listen to whatever anyone say regarding improvement for the company you’ve poured you heart, should and monies into? Who are we to tell you??! Ahhh, perhaps a light goes on here? Who is a stakeholder and why are they, and their voices, important?
Explanation / Answer
A stakeholder is a party that has an interest in an enterprise . The main stakeholders in a typical corporation are its investors, employees, customers and suppliers. But, modern theory goes beyond this to encompass additional stakeholders - the community, government and trade associations
A common issue that comes up with having many stakeholders in an enterprise is that their various self-interests may not all be aligned. In fact, they may be in conflict with each other.
The main aim of a corporate enterprise from the viewpoint of its shareholders is to maximize profits and enhance shareholder value. As labor costs are a critical input cost for most firms, an enterprise may seek to keep these costs under tight control. This may have the effect of making another important group of stakeholders, its employees, unhappy. The most efficient firms sucessfully manage the self-interests and expectations of its stakeholders.