Role of Stakeholder

In: Business and Management

Submitted By luluhndz
Words 773
Pages 4
Role of StakeHolder
Lucy Hernandez
November 23rd, 2015
MGT/420
Professor Rita Foster

Role of StakeHolder - Intro
The word “stakeholder” means any person with an interest in the business -- someone who can contribute to the company’s growth and success or who benefits from its success. There are various stakeholders in a business such as Employees, StockHolders, Customers, Vendors, and even the community. Each plays different roles and their involvement time is also different from each other. The reason for this is that the company’s CEO seeks to utilize the skills, experience and knowledge of each stakeholder group to further the organization’s long-term goals and ensure it’s success.
Employees
While management sets the overall strategic direction for the company, it is the employees that are responsible for carrying out the tasks specified by the managers in the company’s strategic plan. Employees are the closest to the action. In a manufacturing environment, they work directly on the company’s products, and they interact with customers on a daily basis. The company’s success depends greatly on the skill and dedication of its employees. Without the employees performing their roles and implementing the ideas of the CEO, business planners and financial managers , the company will not reach its revenue and profit potential.
Stockholders
The initial role of a stockholder is to provide the capital a company needs to grow and expand. If we talk about a startup company, the capital it needs to launch its products or services into the marketplace also comes from stockholders. In private companies, stockholders may take an active role in setting the strategic direction for the venture. They sometimes provide guidance or advice to the company’s management. In public companies, stockholders can attend an annual meeting and ask questions of the company’s top…...

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