Stakeholders of a Business

Stakeholders are the parties who are influenced directly or indirectly due to the conduct of a business. These parties have different expectations. Some examples for such expectations are given below.

Owners - Satisfactory return to the capital invested.
Employees - Earning a reasonable salary and the job security.
Creditors - Recovering the loans provided within the due period.
Government - Complying with the rules and regulations and charging taxes properly.
Consumers - Obtaining quality products at a reasonable price.

As given in the above illustration different parties believe that their expectations will be met and when they are not being met they tend to act against the business. Hence, a business should decide their policies and ethics, in a way that the expectations of above groups are met.

Rewards of Complying with Social Responsibility

# Improve the goodwill of the business.
# Ensure the long term survival of the business.
# Possibility of legal issues to emerge will be low.
# High profitability is ensured as the demand for the products and services of the business increases.
# Satisfaction and loyalty of employees will increase.


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