A stakeholder is an individuals or groups who have a stake in what the organization does or how it performs. A stakeholder profits or losses from the actions that a company makes. Ch. 8 of Managing Business Ethics (Trevino & Nelson, 2007) separates stakeholders into four major stakeholder groups. How do you define stakeholders? According to Nelson and Trevino, (2006), “Stakeholders can include owners, managers, customers, employees, suppliers, financial institutions, the community, the government, the natural environment, and, of course, stockholders”. For instance, if I invested in Microsoft’s stock when Bill Gates and his partner were in the early stages of putting their corporation together; then I would reap (profit) the benefits of the growth that their company has experienced throughout the years. An example of a loss, if I invested in stock from Enron during their scandal than I would have lost all of the money that I invested because of the financial crimes that were taking place there. There are four major stakeholder groups: consumers or customers, employees, shareholders, and the community.
Which group’s interest is the most important, and why?
The consumer/customer has the most important interest. I feel this way because the consumer buys the product that the organization sells, and if the consumer doesn’t buy then the organization would go out of business. The customer is needed in order to make money and stay in business.
A stakeholder is an individuals or groups who have a stake in what the organization does or how it performs. A stakeholder profits or losses from the actio