Choose a business and idenyify the stakeholders. Investigate their rights and responsibilities.

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Stewart McGill



Every business has stakeholders, from the smallest shop to the biggest of multi-nationals without stakeholders these organisations would fail. Stakeholders are people who have dealings with a business, and regardless of the size of the business, there are always people who are involved with its running. Throughout this essay I’ll look at stakeholders are involvement in a company, their motives for being a stakeholder, their responsibilities and their moral and legal rights.

I have chosen to look at the stakeholders of Tesco. Although there are stakeholders within any business, larger companies have more and for this reason it’s vital the company cares for and looks after these people.

Tesco PLC have got many stakeholders, including…

  • Shareholders
  • Employees
  • Customers
  • Creditors
  • The local community
  • Suppliers

Having so many stakeholders, Tesco admit that it’s hard to satisfy everybody, but given its reputation, it can’t fail with any one of these groups.

There are aims that companies have to maintain peace between stakeholders as well as ensuring the highest profit possible.

Shareholders own a proportion of a business. Although people own varying numbers of shares, shareholders expect to receive dividends. At the end of each financial year, they want some of the company’s profit on every share. Without shareholders it’d be hard for a company to function because cash flow would be poorer. Within the company, a shareholder does little, with only major decisions being voted on by shareholders. The board carries out the daily running. Even if the company makes losses and can’t pay a dividend, shareholders are allowed a copy of the annual report, including financial documentation. Naturally, companies want to offer high dividends to maintain good relationships with shareholders.

Employees are important assets to a company; employees require good relationships and wages. Different employees have responsibilities, which is why they have varying salaries. People recognise that skilled employees expect to receive more. Nowadays companies try to motivate. Government has laws, leading to more secure workplaces. Employers must ensure that employees are safe which has resulted in increased training and an improvement in machinery and environment. Employees expect their job to be secure; however, it’s hard to prove that an employee isn’t to become jobless. To receive these benefits they must carry out specific tasks and naturally, these tasks are listed in contracts.

Customers use a company in order to receive a desired product. Customers want the lowest price, their primary concern for using any company. There is more emphasis on high customer service standards. In competitive markets, prices are similar, and companies must offer something a little bit more. If customers feel welcome and special, they are more likely to return. Other than paying, a customer has no responsibility to remain with a company, which is why its vital companies have the best value products paired with the optimum customer service.

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Creditors sell a product to a company, however are still owed money by the company. They must ensure that the product they offer is to the highest quality; the company must pay them the remainder of the given price. A decision is agreed as to how much is paid, when payments are due and how much is to be paid in every instalment. If the creditor isn’t paid on time, they may be reluctant to offer the service again, if the situation becomes out of hand, the company may be unable to use creditors in the future.

Suppliers, ...

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