ENERGY

Energy Sector

Energy Sector

Introduction

In this assignment, we will try to discuss the different stakeholders and their interests related to the energy sector. We will also try to understand the process of fracking in the energy sector. There will also be the discussion of the conflicting views, which are held by various stakeholders. Furthermore, we will also analyze the theory of supply and demand and try to relate it to the energy sector. We will also determine that whether the energy related products are price elastic or not. Moreover, we will also discuss the Carroll's opinion regarding the corporate social responsibility and try to relate it with the energy sector.

Part One

The process involved in the injecting and drilling fluid into the ground at a very high pressure in order to fracture shale rocks to release natural gas inside is called fracking. The stakeholder theory is related to the business ethics and organizational management (Freeman, 2006). The primary aim of the stakeholder theory is to address the values and morals in managing an organization. This theory was first discussed in detail by R.Edward Freeman in his book. He has focused that the stakeholder approach is related to the identification of the groups, which are considered as the stakeholders of the company. Similarly, this theory emphasizes the need to give proper attention to the needs and interests of these groups. The essence of the stakeholder theory is actually to identify and know that who actually matters.

The traditional view, which actually prevails in most of the organizations, is that the shareholders must be given more priority as compared to other members of the organization. Similarly, this view also stresses that the stockholders must be given more preference as compared to the stakeholders. On the contrary, the other view is presented by the stakeholder theory, which suggests that apart from the shareholders, there are other parties involved which should also be given preference and importance. According to the stakeholder theory, the stakeholders include the customers, customers, financiers, suppliers, communities, governmental bodies, political groups, trade associations and the trade unions (Freeman, 2006). Some of the literature considers even the competitors as the stakeholders, while the some literature considers that the competitors cannot be the stakeholders. R. Edward Freeman is generally credited to be the pioneer and father of the stakeholder theory.



The stakeholders can be categorized as internal and external. The internal stakeholders are those which are directly linked to the company or are part of it. On the other hand, the external stakeholders are those which do not work directly for the company but have important stakes in the company. Some of the internal stakeholders include the employees, managers and owners. On the other hand, the external stakeholders include the suppliers, society, government, creditors, customers and shareholders. Among the internal stakeholders employees are of pivotal importance (Freeman, 2006). The employees must be aware of the all the important happenings and developments within the organizations. Every new development within the organization must be discussed with ...