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Unit 2 STakeholders of Cadburys

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Unit 2 Criterion -1 Stakeholder definition - A Stakeholder is individuals or organisations that are directly and indirectly affected by the company's decisions. Stakeholders can dramatically affect a business, whether they are internally or externally linked to the business. Cadbury has a large range of stakeholders as they are a large company so they effect more organisations and individuals than a smaller company. The company needs to keep all of its stakeholders happy to ensure the company runs smoothly. Employees are stakeholders of Cadburys as they are affected in the day to day running of the business, some more then others; this means employees at Cadburys are called internal stakeholders. Cadbury's has a tradition of encouraging direct, two-way involvement and communication with employees. Managers hold regular individual and team meetings to inform colleagues about the business and hear their views. The company also conducts surveys to check how its employees feel about working at Cadbury's. Internal newsletters, a group website and many local websites help employees keep up to date with what is going on. This helps Cadburys engage its employee stakeholders and can make sure that the employees are satisfied in what actions Cadbury's takes. Employees at Cadburys are directly affected by the decisions Cadburys makes, for instance, Cadburys invested in new technologies to make the work more efficient and time conservative but the employees at Cadburys needed training to use the new equipment. ...read more.


Local residents can be affected by the decisions Cadbury make as the factory could decide to work through the night which may cause residents distress from the noise made from the factory. Cadburys will listen to the opinions and needs of its stakeholders (internal & external) to try and make sure they make everyone satisfied in the actions they take. The local community is affected by Cadburys decisions, for instance; Cadburys decided to open a new factory in an area of high unemployment because of an incentive from the government (see below). This affected the community considerably as it created jobs for the local residents, which in effect raised there level of income and improved their quality of life. Suppliers to Cadburys are stakeholders as they supply Cadburys with produce which gives the suppliers business. Cadburys has around 40,000 suppliers around the world and its Ethical Sourcing Standards set out how to work with them. The company is in regular dialogue with its suppliers and responds to their suggestions. For example, if a supplier had views on ways of improving quality or efficiency then Cadbury's would listen and possibly act on ideas if they made good business sense. Working in partnership with suppliers makes it possible to find out their needs and also to ensure they satisfy Cadbury's requirements for quality materials while operating in a socially responsible way. ...read more.


In 2003, Cadbury, the chocolate manufacturer, announced a �9 million pound scheme to put sports equipment in schools across the UK. The scheme involved encouraging customers to save tokens from chocolate bars and give them in to schools. 750 tokens were needed to get the first bit of sports equipment and 2,000 tokens would allow the school to acquire a range of different equipment. For financially hard-pressed schools, the chance to get new equipment was very appealing. Top sports stars such as boxer Audley Harrison and runner Paula Radcliffe had both signed sponsorship deals with Cadbury and the government also supported Cadbury's 'Get Active Campaign'. The company and the government, however, were criticised for encouraging children to eat more chocolate when there are growing concerns about the problem of obesity in young people. Shareholders and management can disagree over many things: Managers may wish to hold more cash, they may wish to lower the firm's risk and subsequently increase job security, they may not want to work hard, they may want to pay employees more than they deserve, and they may want other perks such as a fancy office or a jet plane. These are but a few of the number of things that managers and shareholders can disagree over. Employees & Shareholders can have a stakeholder conflict because employees may want higher wages and shareholders would want higher dividends. Usually the stakeholder with the most influence will get what they want but overall Cadburys needs to do what's best for the company. ?? ?? ?? ?? Elliot Meads ...read more.

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