Stakeholders: Large Firms Sample

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It could be said that “large corporations abuse their power against stakeholders e. g. clients. employees. providers. public. communities” . Make you hold or differ? Explain what you answer is and why have you reached that decision. You are to include a clear rational statement for your instance that has strong illustrations to back up your thought.

Unlike stockholders who are entirely interested in return dividends and portion monetary value growing. stakeholders have broad assortment of involvements in how companies operate. Freeman ( 1984 ) stated that stakeholders are. “any group or person who can impact or is affected by the accomplishment of the organization’s objectives” . The chief aim for houses is profit maximization and for this ground I agree to a certain extent that big corporations abuse their power against stakeholders.

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First. Customers. “provide the lifeblood for the house in the signifier of gross. ” ( Freeman 1984 ) . Firms are reliant on clients as they indirectly fund the development and growing of houses. However. clients want value for money and “cheap” monetary values. There are many companies that exploit the client and as a consequence addition supernormal/abnormal net incomes. For illustration. the company British gas. who reported an 11 % addition in net income to ?606m despite the energy cost additions. As a consequence many inquiries were asked over the equity of energy measure increases particularly in this economic clime. Therefore this high spots that the big corporation has abused the stakeholder in this case.

Employees expect security. benefits and rewards in return for their work. Their economic well being is to the full reliant on the house. doing them of import stakeholders. However. many houses exploit workers in order to bring forth high net income or merely replace workers with machines and engineering. For illustration. the Taiwan iPhone maker was accused of sick intervention and low rewards ( 5p per hr ) to its employees after a batch of self-destructions among its employees. Now the company have replaced workers with automatons. By making so they overcame this job but brought on the issue of redundancies.

Recently there have been many revenue enhancement turning away candidates keeping protests in Starbucks coffeehouse after the find that they were avoiding revenue enhancement. The knock-on affect is immediate loss of consumer trueness. Margret Hodge stated that it was. “completely and utterly immoral. ” The Public feel as if they are being scammed by the company. This illustration illustrates how the big corporation. Starbucks have been moving for their benefit and non acknowledging the public involvement. Therefore once they were discovered to be moving amorally they had to move fast in. “a despairing effort to debar public force per unit area. ”

Large houses can hold the power to work smaller business’ for their ain benefit. The chemist concatenation Boots were accused of. “exploiting its providers to better its hard currency flow. ” They decided to get down bear downing a 2. 5 % “settlement fee” . which is merely a charge for paying the measures. an action which comes at no cost! The concern is that if all big companies treat their providers in this mode that many little providers will be out of concern as a consequence of the big houses mistreating their power. However this is non ever the instance. many providers and companies have close ties which enable them to assist each other. For illustration. Chrysler was said to hold close ties with its provider and when Chrysler was on the brink of failure the providers accepted late payments. However I believe that this is an anomalousness and the bulk of big houses continue mistreating their power over little providers.

For a house to construct mills they need the local community to allow them the right to travel in front. and with this the house are expected to handle the community good. for illustration a benefit to the community would be: addition in occupations available in the country. However the negatives outweigh the exclusive benefit of increased labor. This is due to the negative outwardnesss of mills. in the signifier of noise or air pollution and bad ode ours. Furthermore. in some instances there is non perfect information and so if a house is forced to go forth the community the effects are lay waste toing due to a loss of so many occupations. The worst affected country is Associated Octel in the South Wirral which releases more than 5. 300 tones of pollutants per twelvemonth. This consequences in lower quality of life and increase in wellness hazards. As a consequence of these statistics it is clear that big houses endanger communities through edifice certain mills.

In decision. after garnering information from articles. critics and theory it is clear that big corporations have one chief end. which does non include the involvement of stakeholders. In some instances we can see that the stakeholders are of importance. i. e. Chrysler. and although stakeholders have to be taken into history by big houses. the bulk of stakeholders are comparatively powerless which leads to the big corporations being able to mistreat their power against them.


BBC. 8 December 2012. “UK Untrimmed protests over Starbucks “tax avoidance” . hypertext transfer protocol: //www. bbc. co. uk/news/uk-20650945.

Bunn. D. Grant T. Savage. Betsy B. Holloway. ( 2002 ) . ”Stakeholder analysis for multi-sector innovations” . Journal of Business & A ; Industrial Marketing. Vol. 17 Iodine: 2 pp. 181 – 203

Cooper. L. G. ( 2000 ) . “Strategic selling planning for radically new products” . Journal of Marketing. Vol. 64. pp. 1-16.

Freeman. R. E. ( 1984 ) . Strategic Management: A Stakeholder Approach. Pitman. Boston. MA. p. 46. 43. 48

The Guardian. August 2011. “Taiwan iPhone maker replaces Chinese workers with robots”http: //www. defender. co. uk/world/2011/aug/01/foxconn-robots-replace-chinese-workers.

Sky News. 27 February 2013. “British Gas Sees Profit up to 11 % to ?606m” . hypertext transfer protocol: //uk. finance. yokel. com/news/british-gas-sees-profit-11-070722683. hypertext markup language

Yvon Pesqueux. Salma Damak-Ayadi. ( 2005 ) . ”Stakeholder theory in perspective” . Corporate Administration. Vol. 5 Iodine: 2 pp. 5 – 21

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