Do shareholders have obligations to stakeholders?
Shareholders either have obligations to stakeholders or they do not. … Hence, either way, business managers have a greater obligation than they do when the direct model applies.
Who is responsible for stakeholder?
Team leaders and project managers are examples of project stakeholders, according to Lumen Learning. Team leaders and project managers may consist of company staff members or outside consultants specifically hired to oversee larger project issues.
How are shareholders affected as stakeholders?
Shareholders are primary stakeholders of a public company because in owning shares, they are participating in ownership of the company. … Because corporations have a relationship with both internal and external stakeholders, investors and corporations have made the concept of corporate social responsibility popular.
Who is more important shareholders or stakeholders?
Although shareholders may be the largest type of stakeholders, because shareholders are affected directly by a company’s performance, it has become more commonplace for additional groups to also be considered stakeholders.
What are some examples of stakeholders?
Typical stakeholders are investors, employees, customers, suppliers, communities, governments, or trade associations. An entity’s stakeholders can be both internal or external to the organization.
What is the most important responsibility of a business?
The first and most important responsibility of a business should be towards the shareholders or the owners who have invested money. They are eligible for a fair return on the money they have invested.
What are the responsibilities of a business firm?
Firms must help protect the environment and provide a good place to work. Companies also engage in corporate philanthropy, which includes contributing cash, donating goods and services, and supporting volunteer efforts of employees. Finally, companies are responsible to investors.
What documents can govern the relationship between executives and the corporations?
Articles of incorporation, which is the primary document and typically regulates the corporation’s activities including its powers and objectives. Corporate bylaws, which regulate the company in relation to its internal management and affairs.
Why is customer a stakeholder?
Customers are actually stakeholders of a business, in that they are impacted by the quality of service/products and their value. For example, passengers traveling on an airplane literally have their lives in the company’s hands when flying with the airline.