Assume, for purposes of this paper, that you are starting the business using the

Question

Assume, for purposes of this paper, that you are starting the business using the stakeholder theory of the firm in deciding whether you will be social responsible in actions and to what degree

Select three from the list of stakeholders that we covered in our class:

Owners/stockholders (corporate governance)

Natural Environment (people who care about protecting the environment)

Consumers/customers

Employees

Community

For each stakeholder you selected, discuss specific things that you will do as a founding manager of the firm to establish and sustain a responsible and ethical relationship with that particular stakeholder.

Review the typical ethical and socially responsible issues that typically arise for your stakeholder group, then go beyond compliance with the laws by stating specific “actions” you will do to sincerely “create benefit or minimize harm” for that stakeholder group while acknowledging that your business is still a business and is charged with making a reasonable profit if it is to survive. And, be sure to state the intended consequences for the actions you recommend, in other words, state “why” you are recommending each action. Remember to think critically, imaginatively, realistically and strategically.

Explanation / Answer

To answer this question, we need to understand what is a Stakeholder theory: This theory propses that there are various stakeholders to a business other than management and and its shareholders that includes employees, customers, suppliers, financiers, communities, governmental bodies, political groups, trade associations, and trade unions.Competitors are sometimes counted as affect the business and its strategy.

The stakeholder view of strategy integrates both a resource-based view and a market-based view, and adds a socio-political level to business decision making and deciding long term and short terms strategy.

I assume that I am starting a footwear company which involves a lot of soil, water and air pollution.

the stakeholders that I have selected are:

1. Owners/stockholders (corporate governance)

2. Natural Environment (people who care about protecting the environment)

3. Employees

Discussion:

1. Owners/stockholders (corporate governance): I will ensure that a proper business hierarchy is maintained so that decision making is easier, and also a proper communication link between top, middle and ground level management. I will also ensure that a proper information that quarterly financial reports reach to these stakeholders. I will also implement a process in which shareholders can directly communicate to top management at regular interval about their feedback and views.

2. Natural Environment (people who care about protecting the environment): The industry I will be starting involves a lot of air, water and soil pollution. I will ensure that water is processed before being released into the water body and causes no harm to bio life. Also, air pollution be controlled by limiting carbon emission and planting more trees. Soil pollution can be avoided by implementing advanced techniques to destroy final wastes. Also, standards like EMS-14001 will be implemented to make sure that practices are in confirmity with global best and these reports are published on regular intervals to make sure that all the people concerned about environment are communucated about companies efforts.

3. Employees: proper working conditions, insurance facilities and regular check ups will be provided to make sure that employees remain healthy. Performance based bonus and promotio policies be kept transparent. Employees will also be communicated about all the companies efforts for social welfare to maintain positive image of the company. Also workers be used as brand ambassadors.

In all my policies I am emphasising proper communication with all stakeholders so that all know what is happening and this will also ensure regular feedback and management can work towards towards holistic development of all.

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