2. SHREE SHIV CHHATRAPATI COLLEGE
JUNNAR
BACHELOR OF BUSINESS ADMINISTRATION
CLASS:- TYBBA
SEMESTER:- 5th
SUBJECT:- BUSINESS ETHICS
PRESENTED BY:- RAVIRAJ DEVANAND
CHALAK
SUBJECT TEACHER:-SRUSHTI THORAT
MADAM
3. STAKEHOLDERS
A STAKEHOLDER CAN BE DEFINED AS AN ENTITY (A PERSON OR GROUP OR
AN ORGANIZATION ) WHICH HAS A STAKE IN THE ORGANISATION. THIS
STAKE CAN BE DIRECT OR INDIRECT. SOME OF THE MAJOR STAKEHOLDERS
OF AN ORGANISATION ARE ITS EMPLOYEES, ITS DIRECTORS, CREDITORS,
SUPPLIERS, THE OWNERS, CUSTOMERS, THE GOVERNMENT AND THE
COMMUNITY AT LARGE. THE RELATIONSHIP BETWEEN THE STAKEHOLDER
AND THE ORGANISATION IS TWO-FOLD. ON ONE HAND, THE STAKEHOLDER
HAS THE POWER TO INFLUENCE THE DECISIONS, POLICIES, ACTIONS AND
PRACTISES OF THE ORGANISATION, WHILE ON THE OTHER HAND THEY ALSO
GET INFLUENCED BY THESE FACTORS.
4. CLASSIFICATION OF STAKEHOLDERS
ON THE BASIS OF RELATIONSHIP WITH THE ORGANISATION, STAKEHOLDERS CAN
BE CLASSING INTO TWO MAJOR GROUPS:
1. INTERNAL STAKEHOLDERS:-
THE PEOPLE THAT ARE INSIDE THE ORGANISATION, OR THAT WORK
DIRECTLY WITH THE ORGANISATION, ARE KNOWN AS INTERNAL STAKEHOLDER.
5. SOME MAJOR INTERNAL STAKEHOLDERS ARE AS FOLLOWS:
1. SHAREHOLDERS: SHAREHOLDERS ARE THE INDIVIDUALS OR COMPANIES
WHO HOLD THE SHARES OF THE ORGANISATION. HENCE, THEY ARE CALLED
THE "OWNERS OF THE BUSINESS". SHAREHOLDERS ARE TREATED AS THE
MEMBERS OF THE ORGANISATION THESE SHAREHOLDERS INVEST IN THE
ORGANISATION SO AS TO HELP THE ORGANISATION IN REALISING ITS
OBJECTIVES. THE ORGANISATION'S PRIME RESPONSIBILITY IS TO FULFIL THE
INTERESTS OF SHAREHOLDERS. THE SHAREHOLDER GET THE SHARE IN THE
PROFITS AS A RETURN FOR THE INVESTMENTS MADE BY THEM.
6. 2. WORKERS/EMPLOYEES: WORKERS OR EMPLOYEES ARE THE PEOPLE WHO WORK
IN THE ORGANISATION, AND IN RETURN THEY EXPECT REMUNERATION, BENEFITS,
SECURITY, ETC. THE RELATIONSHIP BETWEEN EMPLOYEES AND THE ORGANISATION IS
BASED ON THE EMPLOYMENT CONTRACT. EMPLOYEES CONTRIBUTE THEIR TIME AND
EFFORTS FOR THE BENEFIT OF THE ORGANISATION, WHICH IN TURN POSES CERTAIN
OBLIGATIONS ON THE ORGANISATION.
IT BECOMES THE RESPONSIBILITY OF THE ORGANISATION TO FULFIL ITS
DUTIES REGARDING ITS EMPLOYEES. ONE OF THE MAJOR RESPONSIBILITIES OF THE
ORGANISATION TOWARDS ITS EMPLOYEES IS TO TREAT THEM AS HUMAN
BEINGS AND ACKNOWLEDGING THEIR SIGNIFICANCE AS A VALUABLE RESOURCE FOR
ACHIEVING ORGANISATIONAL GOALS.
7. 3. MANAGEMENT: MANAGEMENT OF AN ORGANISATION AFFECTS THE
ORGANISATION AS WELL AS OTHER STAKEHOLDERS. MANAGEMENT IS
RELATED WITH THE ORGANISATION THROUGH AN IMPLICIT OR EXPLICIT
CONTRACT. THE MAJOR RESPONSIBILITY OF THE MANAGEMENT IS TO
MAINTAIN THE OPERATIONS OF AN ORGANISATION AS WELL AS TO MAKE
STRATEGIES FOR THE WELL-BEING OF THE ORGANISATION. MANAGEMENT IS
RESPONSIBLE FOR HARMONISING THE DIFFERENT ENTITLEMENTS OF THE
STAKEHOLDERS.
8. 2.EXTERNAL STAKEHOLDERS:
THE INDIVIDUALS, GROUPS OR COMPANIES THAT AN OUTSIDE THE ORGANISATION
AND WORK INDIRECTLY WITH THE ORGANISATION ARE KNOW AS EXTERNAL
STAKEHOLDERS. EXTERNAL STAKEHOLDERS CAN INFLUENCE AND B
STAKEHOLDERS ARE AS FOLLOWS:
9. 1.CUSTOMERS: CUSTOMERS OR CONSUMERS ARE THE PEOPLE OR
ORGANISATIONS THE PURCHASE THE PRODUCTS OF THE ORGANISATION. HENCE,
CUSTOMERS ARE ONE THE MAIN SOURCES OF REVENUE FOR ANY BUSINESS. AS
THESE EARNINGS ARE IT INVESTED IN VARIOUS BUSINESS ACTIVITIES, THEREFORE,
CUSTOMERS ARE THE LA ASSET INVOLVED INDIRECTLY IN THE NEW
PRODUCTSERVICE DEVELOPMENT PROCESS. CUSTOMERS MAXIMISE THE SALES OF
THE ORGANISATION BY PURCHASING ITS PRODUCTS AND BY SPREADING POSITIVE
A WORD-OF-MOUTH. HENCE, SATISFYING CUSTOMERS IS ONE OF MOST
IMPORTANT GOALS FOR AN ORGANISATION TO SURVIVE IN THE LONG-RUN.
10. 2.SUPPLIERS: SUPPLIERS ARE THOSE INDIVIDUALS OR BUSINESS OWNERS THAT
SUPPLY THE RAW MATERIALS OR SEMI-FINISHED GOODS TO THE ORGANISATION
FOR THE FINAL PRODUCTION PROCESS. SOME SUPPLIERS THAT DELIVER FINISHED
GOODS TO THE CUSTOMERS ARE CALLED DISTRIBUTORS. THE QUALITY AND
VALUE OF END-PRODUCT IS DEFINED BY THE MATERIAL PROVIDED BY THE
SUPPLIERS. THEREFORE, BUSINESS DEALINGS WITH THE SUPPLIERS SHOULD BE
TREATED WISELY BY THE ORGANISATION. IT IS VERY IMPORTANT FOR THE
ORGANISATION TO DEVELOP GOOD RELATIONS WITH THE SUPPLIERS THROUGH
WHICH THE PRODUCTION COSTS CAN BE MINIMISED WHILE PRODUCTIVITY AND
QUALITY CAN BE MAXIMISED.
11. 3.CREDITORS: THE COMPANIES THAT PROVIDE RAW MATERIALS OR SEMI-
FINISHED GOODS ON CREDIT TO THE ORGANISATION ARE CALLED AS CREDITORS.
IF THE ORGANISATION DOES NOT PAY THE DUE AMOUNT IN TIME, THEN THE
BUSINESS IS AT A RISK OF LOSING ITS COMPETITIVE EDGE, AS JUDICIOUS RELATION
BETWEEN THE ORGANISATION AND ITS SUPPLIERS IS ONE OF THE MAJOR SOURCES
OF SUCCESS. IN CASE OF DISSATISFACTION, THE SUPPLIERS CAN AFFECT THE
BUSINESS OF AN ORGANISATION BY DISCONTINUING THE SUPPLY OF GOODS OR
BY SUPPLYING POOR QUALITY GOODS.
12. 4.COMPETITORS: THE ORGANISATION IS GRATEFUL TO ITS COMPETITORS AS IT
IS TOWARDS ITS STAKEHOLDERS. ANY COMPETITIVE STRATEGY ADOPTED BY THE
FIRM CAN POSITIVELY OR NEGATIVELY AFFECT THE OPERATIONS OF ITS
COMPETITORS AND VICE VERSA. HENCE, AN ORGANISATION SHOULD ALWAYS
ADOPT ETHICAL MEASURES FOR SURVIVAL IN THE COMPETITIVE MARKET.
