Business organizations want satisfying agents in society. They are set up to provide or render services at a profit. As such, entrepreneurs set up businesses, for customers, for the supplier of raw materials, adherence to government regulations, and to provide quality services of such businesses,
These categories of people are referred to as stakeholders.
What is the responsibility of a keyholder?
The keyholder’s responsibility is to ensure that the business is run according to predetermined rules and regulations while demonstrating a satisfactory level of autonomy in execution.
Stakeholders are a group of people or individuals who are affected directly or indirectly by the successor operation of the business. They are groups of people with a vested interest in the business.
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Each of the categories of the stakeholder has its responsibilities, and this influences the success or failure of the entity. Generally, these stakeholders are classified into two categories, along with their unique responsibilities. They include;
The primary stakeholders: These are people directly involved in the running and management of the business. Their primary responsibilities are to work towards the achievement of the organization’s goals and objectives.
This category of stakeholders include,
The employees: They are employed to carry out one role or the other towards the achievement of the organization’s objective. They play an important role in the success or failure of an enterprise.
They are usually in charge of product creation, packaging, marketing, delivering services among a range of activities a business might be involved in. They are often rewarded with wages or salaries.
Shareholders: These are the capital provider for the operation of the enterprise. They are referred to as the owner of the business and are rewarded with dividends, however as a result of the nature of the public company as a legal entity that separates ownership from management, the company is managed by a board of directors on behalf of the shareholders.
Managers/Directors: These categories of people are employed to run and manage the entity on behalf of the shareholders. Their primary responsibility is to maximize the shareholder’s wealth, they have the power to make buying decisions, selling decisions, contracts decisions, and human resources decisions of the enterprise.
Board of directors: This is a group of people elected to represent the shareholders of a corporate body. They are the governing body of an entity that meets at a regular set of corporate management and oversight policies.
Secondary stakeholders: These are a set of people that either regulate or provide support for the successful operation of the entity. they include;
Customers: These are people that consume the product or services of the organization. They are very important for the survival of an entity. Every organization exists to furnish the needs of its customer, at a profit, however, customers have roles to perform, they provide feedback to the organization on what they have done right and what Improvement they crave.
Suppliers: They supply the raw materials needed by the business organization in making their product. Without the suppliers, it will be difficult for the organization to carry out its daily activities that will yield profit to the organization.
Government: The government regulates the activities of the organization. they provide a certain standard that guides the quality of products produced or services rendered. They also provide guides on how taxes are to paid and the associated exemptions.
Communities: Finally we have the communities, this is the community in which the business operates. Organizations mostly source their labor or security from the community they operate.
A smart business organization will seek to maintain a good relationship with its community, because, without their support, the business is most likely to fail, due to sabotage or hostile laws.