stakeholder theory

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social responsibility of business towards verious sectors.

Transcript of stakeholder theory


2. GROUP MEMBERS Arya Rajeev 7705 Pratik Botra 7715 Ajinkya Dingankar 7725 Jagruti Godambe 7735 Shivraj kakade 7745 Riddhi Lakhani 7755 3. FLOW OF PRESENTATION Introduction to stakeholder theory Internal stakeholders External stakeholders 4. INTRODUCTION TO STAKEHOLDER THEORY 5. STAKEHOLDER THEORY DEFINITION: Stakeholder theory is a A conceptual framework of business ethics and organizational management which addresses moral and ethical values in the management of a business or other organization. 6. Corporations are not simply managed in the interests of their shareholders alone, but that there are a whole range of stakeholders. It identifies and models the groups, which are stakeholders of a corporation and both describes and recommends various methods to satisfy them. Ethical organization recognizes its responsibilities towards all stakeholders. 7. There are two types of stakeholders : INTERNAL STAKEHOLDERS. EXTERNAL STAKEHOLDERS. 8. stakeholders Shareholders Employees management Customers Suppliers Creditors Competitors Government society internal external 9. INTERNAL STAKEHOLDERS 10. RESPONSIBILITY TOWARDS OWNERS/SHAREHOLDERS 1. Proper use of capital 2. To manage business effectively 3. To provide accurate and timely information 4. Ensure growth and appreciation of owners capital 5. Provide regular and fair return on owners capital 11. RESPONSIBILITY TOWARDS EMPLOYEES Fair compensation for service provided Timely and regular payments Provision of proper working and welfare conditions Job security Provision of security benefits and better living conditions Training and development opportunities To recognize and honor individual workers right Fair and unbiased treatment to all 12. RESPONSIBILITY TOWARDS MANAGEMENT Management decisions have impact Shareholders expects higher returns Management has a fine balance 13. EXTERNAL STAKEHOLDERS 14. RESPONSIBILITY TOWARDS CUSTOMERS (Mitsubishi Electrics) Ensuring consistent quality Providing ease-to-use products Increasing customer satisfaction Responding to product-related issues 15. Responsibilities towards Suppliers 16. RESPONSIBILITIES TOWARDS SUPPLIERS Giving regular orders Dealing with suppliers on fair terms and conditions Availing reasonable terms of credit Timely payment of dues Helping suppliers in improving or upgrading the quality 17. Responsibilities taken up by Casio Worldwide towards its Vendors Casio has established Procurement Policies in order to execute its social responsibility to conduct fair and equitable transactions throughout the supply chain.The policies cover matters including legal compliance, respecting human rights, labor, safety, and health, as well as environmental protection such as biodiversity preservation and risk control of chemical contents and information security 18. Casio strives to achieve the following Fair & equitable transactions Compliance with laws and social norms Environment Protection Strengthening partnerships with suppliers Policies of Supplier selection & transaction continuation Securing right place & quality Prohibition of personal-interest relationships 19. Responsibilities towards Investors/Creditors 20. RESPONSIBILITIES TOWARDS INVESTORS/CREDITORS To provide fair returns on capital invested To supply complete and accurate information To ensure that the value of investment doesnt fall in the long term To raise public image of the company To improve prestige of the company 21. RESPONSIBILITIES TOWARDS INVESTORS/CREDITORS To undertake R&D activities for diversification To build up financial stability and ensure safety of investment To ensure timely payment of interests and principal To not participate in unethical practices and bring disrepute to the company 22. Responsibilities towards competitors 23. RESPONSIBILITIES TOWARDS COMPETITORS Not to claim exceptionally high commissions to agents and distributors Not to offer too high discounts to the consumers Not to defame competitors directly or indirectly 24. Responsibility towards society and government 25. RESPONSIBILITIES TOWARDS SOCIETY Business morality Development of backward areas Efficient use of resources Financial assistance Protection of environment 26. MILK ADULTERATION 27. MARUTI SUZUKI 28. RESPONSIBILITIES TOWARDS GOVERNMENT Payment of taxes Obeying rules and regulations Giving suggestions Financial help during emergency Earn foreign exchange 29. HELP TO UTTARAKHAND FLOOD VICTIMS 30. Profit Making-An Objective with Ethical Dimension Profit making and Ethics is very hard to be distinguished. UnitarianView-Morality & Ethics are related to business SeparatistView-Business should concentrate on profits and ethics & business doesnt form a part of it. IntegrationView-Ethical Behaviour and Business Integrated 31. Consumers are becoming more and more aware of the unethical practices of the orgainzation You can't make a profit without customers, and customers won't use your business if you outrage them too much. BodyShop was one of the first businesses to build on this trend. Most immoral business practices are actively illegal, at least in Europe and North America 32. SOME OF WORLDS ETHICAL PROFIT MAKING ORGANIZATIONS 33. CONCLUSION Thus , ethical organization is the one that recognizes its responsibilities towards all stakeholders and considers their interest 34. Webliography 03/06/the-worlds-most-ethical-companies-in-2013/ 35. Thank you