Social Performance Part 2

Social Performance Part 2

Introduction

Description of the Company

My company is a medium sized space and exploration company. Primary business activities include space research and exploration. Company was formed several years ago and has had to face several leap and bounds to become what it is today. I am the chief executive officer (CEO) of this medium - sized public corporation. In my quest for excellence I have reviewed several business units and departments of the Ashley Corporation. Though everything seems to be working just fine, corporate social performance of the organization is one area which has a potential to improve further and therefore should undergo some essential changes. I believe in order to enhance corporate social performance it is integral that appropriate stakeholders are identified so that changes can be made that is bona fide i.e. in the best interest of all. Stakeholders can fall under various groups. I believe that their classification is important so that their influence on business can be determined (Caroll, 1991).

Discussion

Primary and Secondary Stakeholder Groups

Stakeholders can be best described as individuals or group of people who are affected (favorably or adversely) by the activities, actions and policies of an organization (Savage, 1991). I am of the opinion that the effort and performance stakeholders put in defines the success of the organization. Stakeholders can be divided into two broad categories primary and secondary stakeholders. In my company where the nature of business is space exploration stakeholders include employees, government, local community, shareholders and possibly animals and future generations. In my company primary stakeholders include employees, senior management, research agencies as they have immediate and direct stake in a company and are an integral part of business processes and environment (Cornell, 1987). The success and failure of Ashley Corporation has a direct impact on primary shareholders. In my company employees have been given the designation of primary stakeholders as the existence and non existence of the company has severe impact on their daily lives. Tomorrow if Ashley Corporation does close down they have will have to be made redundant and thus will be severely affected. I feel shareholders are another legitimate edition to the list of primary stakeholders as they are the ones who bear the greatest risk and lose out the most if a business is not performing well (Harrison, 1999).

Examples of secondary stakeholders in my company would include regulatory agencies of the government, unions, media, political action groups and nongovernmental organizations (NGOs) (Mitroff, 1983). These are those individuals or group of people who are not directly affected by the performance, policies and actions of Ashley Corporation. I feel when enhancing corporate social performance equal attention and importance should be given to secondary stakeholders. As a CEO I have had a chance to meet with some renowned NGOs and I must confess they are particularly interested as to how we operate. I feel government is regarded and quite rightly so, as secondary stakeholders as they do not have any primary role in the performance and ...