Social Performance



Social Performance

Introduction

In this paper, we will discuss the importance of stakeholders of the company. Stake holders are considered as one of the most important part of the company. They are considered as those groups without whom organization would not exist.

Discussion

Primary and Secondary Stakeholders

My company is a marketing company named as ABC Company. The purpose of building relation is bringing the mission of the company to life and engage the stakeholders and make stronger relations with them (Sen, Daniel, 2006). The primary stakeholders are considered as those who are involved with key interests in the organization and its success and failure. They are considered as customers and employees (Parsons, 2001).

Furthermore, secondary stakeholders are those who do not have direct interest in the organization, but they have an important influence on the ability of its members to achieve the desired objectives (Bourne, 2010). They are government agencies or people who are living near the company and are affected by the company pollution. Secondary stakeholders are considered as they can be considered as primary stakeholders (Bourne, 2009). Without considering any situation faced by firms, the second perspective focuses on identifying stakeholders may have a totally separate image one wants to convey identity. 

It is assumed that the stakeholders also contribute to the achievement of their goals and in return for this their opportunity to participate in the division of profits (Lynda, 2010). In the early days of capitalism, it was a rule that the company is a private or family property of the owner and he is always identified with the company and is considered as the only legal owner of the performance of the company (Robert, David, 2006). It was believed that all those coalition partners whose joint efforts have made the company to achieve similar results required a monetary compensation in advance. 

Today, the situation for major public companies is quite different. The property is put up for auction market and is usually distributed among a large number of stakeholders. Most of them have very little stake and do not affect corporate strategy (Parsons, 2001). They cannot be considered as the owners in the truest sense and differ from large investors who are well aware of all the affairs of the company and have a great impact on its operations. 

Ways by which Stakeholders impact business

Successful companies are focused on listening to the needs of employees, customers, suppliers and host communities. They try to anticipate opportunities and risks related to their expectations (Robert, David, 2006). They go beyond the usual practices of companies that interact and dialogue with their stakeholders through various processes within the marketing, public relations, and relationships with shareholders and management. 

The uniqueness lies in the attention and the strategic importance they attach to the process of dialogue and relationship with stakeholders, particularly in the context of Sustainable Development (SD) and Corporate Social Responsibility (CSR) (Bourne, 2009). There are brief points which describe how stakeholders impact business:

Businesses at times face very different and sometimes difficult markets which demand increased supervision and requirements (Bourne, ...