The following paper, 'The Stakeholders and Identifying Challenges, ' is a perfect example of a business assignment. Stakeholders are the important people or parties in a business. For each business entity, there are various stakeholders. Stakeholders are either internal stakeholders or external stakeholders. These stakeholders include the business owners, the government, the customers, society, the suppliers, and the employees. Before the early 1980s, businesses hardly endorsed the stakeholder theory. The theory asserts that the primary purpose of a business is to create profit for the business owners and assume responsibility to the groups in the wider society.
A business organization must balance its responsibilities to its stakeholders. The majority of the entities employ the stakeholder power analysis. It is a very effective tool in tackling imbalances among the stakeholders and identifying challenges in an organization. It also helps to comprehend the effect people have on institutions and policies. The stakeholders have a degree of influence on the success or failure of the organization. Thus, organizations need to fulfill their obligations to their stakeholders (Parker 2004, pp 56). The business is socially obliged to the government in various ways.
A business is required to comply with government rules and regulations. It should pay the tax as stated by the law. The government also has regulations that dictate legal business activities. The business should not engage in illegal activities (Parker 2005, pp 35). The business entities are also socially responsible to the owner. Shareholders own large companies such as the Shell Oil Company. The shareholders of Shell are the major internal stakeholders. The shareholders provide a significant portion of the Company’ s capital, and in turn, they reap profits from their contributions in the form of dividends.
A Board of Directors represents the shareholders. The Board of Directors provides an annual report on the Company’ s progress during the shareholders' Annual General Meeting.
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