How does British Gas fulfil its obligations to stakeholders in terms of ethical business practice and socially responsible corporate behaviour?

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How does British Gas fulfil its obligations to stakeholders in terms of ethical business practice and socially responsible corporate behaviour?

In this essay, I will be looking in to British Gas with a short introduction followed by an analysis of its stakeholders and examining its ethical issues in terms of their main stakeholders. I will then be focusing on how British Gas fulfils its obligations in terms of ethical business practice and corporate behaviour relating to their stakeholders.

British Gas was first introduced back in 1986 when the Gas Act saw the return of the gas industry to the private sector. The company’s name was now British Gas Plc. On 8th December 1986, £9 billion worth of shares were floated on stock markets around the world. Following shareholder approval, British Gas plc was demerged to form two separate companies on 17 February 1997, Centrica plc and BG plc. In December 1999, BG plc completed a financial restructuring which formed the company BG Group plc. BG Group plc later demerged in 2000 to create two new companies BG Group plc and Lattice Group plc. Since demerger the range of products offered by British Gas include home security, plumbing, and kitchen appliance cover.

A business can have many different stakeholders such as customer, employee or the owner of the business. Stakeholders have an interest in what happens as a result of the firm's activities. There are two types of stakeholders, primary and secondary.  Primary stakeholders are those stakeholders “whom a business affects and interacts with most directly” while secondary stakeholders are those stakeholders “whom a business affects in an indirect or limited way” (Fry et al, p124)

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British Gas primary stakeholders are shareholders/owners, employees, customers and senior management. Their secondary stakeholders include community, suppliers, environment, government and other businesses. These stakeholders can be put in groups in a power/interest matrix which shows how much power and interest each stakeholder has on British Gas.

Power and Interest matrix

British Gas' Customers

British Gas is committed to helping customers to reduce their fuel bills through the efficient use of energy. A wide range of programmes are used to help customers benefit from this throughout the country. Efficient use ...

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