Stakeholders - a group of people or organization that has interest or concern in an organization.
For most of the businesses it is vital to have stakeholder groups because it may affect business efficiency, may increase sales, or even it may help for the business to reach its aims and objectives more effectively. Although, there are loads of stakeholders in a business, but not all of them have an equal voice. For example, customers of the business are entitled to fair trading practices but they are not entitled to the same consideration as the company employees. Stakeholders can affect or be affected by the organization's actions, objectives and policies.
The key stakeholders in business include the following:
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Customers – Individuals who receives or consumes products (goods or services) and have the ability to choose between different products.
They want a business to produce high-quality products which would have better value. Also, customers would like to see improvements in brands, productions, and services produced by the business. Employees – Individuals, who work part-time or full-time under a contract of employment, whether oral or written, express or implied, and have recognized rights and duties. The company provides them with a livelihood; employees are seeking for security of employment, promotion opportunities in work and good rates of rewards.
Suppliers – Individuals who supply goods or services for the business.
They want steady and prompt payment form the businesses, also they want to be valued by the company they serve. Owners – Individuals who possess the exclusive right to hold, use, and benefit-from the business. They are the most important individuals in the business. Usually, the owners would be shareholders who invested loads of money and their own time in business and because of this they would love to see their share of profit increase and the value of business rising. Trade unions – An organization whose membership consists of workers and union leaders, united to protect and promote their common interests.
They are seeking to secure higher wages and better working conditions for their members. Employer associations – Organisation of employers generally from the same industry working together for the interests of all member companies on tasks like trade union negotiation, sharing information and advice, and approaching other companies. They are representing the interests of employers in specific industries. Local and national communities – Group of individuals who live in a particular area or district. The actions of business can have massive effects on the communities.
The community leaders, therefore, try to represent the important interest groups. Governments – a group of people that rule a community or unit. It sets and administers public policy and exercises executive, political and sovereign power through customs, institutions, and laws within a country. They want businesses to succeed, to create more jobs and to pay taxes. Governments want to see thriving businesses that take a full responsibility at looking after the welfare of society.
Like the most successful companies, Tesco has its own stakeholder group.
This includes the following:
- Colleagues / Employees
- Non-governmental organizations
Stakeholders influence on Tesco
Stakeholders have a large influence on businesses including Tesco. Particularly on this organization stakeholders have a very large impact, because all of them can affect the business efficiency, profits, growth and working environment. Tesco is trying to pay as much attention at each stakeholder as it can, because company wants to reach its aims and objectives and most important to expand and gain higher profits.
Customers – Customer Question
Time meetings are invaluable. Colleagues hear customers' views on everything, starting from how they are serving them in stores to Tesco role in the community.
Tesco is trying to figure out what customers like and don’t, to improve their brands and production, customer service and all other service that business produce. This is because company wants to gain more loyal customers who would make repeat orders and the effect of this would lead to higher profits which are essential to Tesco. Employees – Colleagues give them their feedback through the Viewpoint colleague survey, Colleague Question Time sessions and Colleague Forum process.
Tesco is trying to make better working conditions for its employees, rise wages and etc., because this might affect business efficiency. If employees will be proud of working for the company and satisfied with working conditions they might treat customers more effectively and this also would lead to more satisfied employees and customers.
Suppliers – Tesco core value is "treat people how they would like to be treated", and it's something they apply firmly to their supplier relationships. Tesco is trying to have close relationships with its suppliers because they want all their production to be distributed at stock when it is needed. Also, Tesco want to make steady and prompt payments for suppliers and to be valued by the company which supplies production. Investors – Tesco Investor Relations team regularly meets analysts from the financial institutions which invest in Tesco or represent shareholders of the business.
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect the business future. Non-governmental organizations – Tesco regularly meet with non-governmental organizations to understand and respond to issues of concern. Tesco is trying to know what people are expecting for the company, what they think about new plans, expansion, wages, areas where stores are located and etc. Tesco is doing this because it might affect business.
Oxfam is a charitable trust but it also Tesco has its own stakeholder group.
- This includes the following: Customers
- Trustees and donors
- Trade unions
- Partnerships (includes the following)
- Local project partners
- Campaigning allies
- Corporate partners
- Institutions and governments
Stakeholders influence on Oxfam
Stakeholders have a large influence on businesses including Oxfam. Particularly on this organization stakeholders have a very large impact, because all of them can affect the business efficiency, profits, working environment and reaching the aims and objectives of the business. Oxfam is trying to pay as much attention at each stakeholder as it can, because the company wants to reach its aims and objectives.
Customers – Customer Question Time meetings are invaluable. Colleagues hear customers' views on everything, starting from how they are serving them in Oxfam and their role in the community.
Oxfam is trying to figure out what customers like and don’t, to improve their production they are selling, customer service and all other service that business produce. This is because the company wants to gain more customers who would buy products and the effect of this would lead to higher profits that would be donated to fight poverty.
Trustees and donors– Trustees and donors give them their feedback through the Viewpoint trustees’ and donors survey, Trustees and donors Question Time sessions and Trustees and donors Forum process. Oxfam is trying to make better working conditions for its employees because this might affect business efficiency.
If employees will be proud of working for the company and satisfied with working conditions they might treat customers more effectively and this also would lead to more satisfied employees and customers. This means that Oxfam will gain higher profits who would help to fight poverty.
Non-governmental organizations/ Trade Unions – Oxfam regularly meet with non-governmental organizations like Trade Unions to understand and respond to issues of concern. Oxfam is trying to know what people are expecting for the company, what they think about future plans, events and etc. Oxfam is doing this because it might help for business to reach its aims and objections, gain higher profits that would help to fight poverty.
Partnerships – Oxfam regularly meet with their partnerships like Local project partners, Campaigning allies, Corporate partners, Institutions and governments, and Suppliers to understand and respond to issues of concern, to create new projects who would stop poverty. They meet to create new advertisements who would reach bigger audiences as possible.
Also Oxfam meets with partnerships to create as cheap as possible operational cost, so that they could donate more money for people in need. Local project partners – Oxfam works with more than 1,000 partner organizations on their projects worldwide. They are the local NGOs, producer groups, co-operatives and small businesses who understand issues that keep local communities trapped in poverty.
Throughout, Oxfam aims to build local skills and experience those communities can be in control of their own lives. Campaigning allies – Oxfam is working with them to get their campaign issues in front of the largest possible audience; they work with a whole range of campaign partners. These include environmental and humanitarian NGOs, unions, faith groups and celebrities.
For example, the Robin Hood Tax alliance includes charities such as Barnado's and Friends of the Earth, plus all the major trade unions and faith organizations such as the Salvation Army. Corporate partners - Whether it's a small business supporting a specific project, or a larger company looking to give something back, Oxfam work with a range of businesses in the UK and worldwide.
There are a variety of ways companies help Oxfam: through staff fundraising (for example, payroll giving); commercial partnerships (when the company donates a percentage of their income); by arranging for staff to donate their unwanted items; or by donating 'gifts in kind' (for example, flights for aid workers to get to a disaster zone). Institutions and governments - Oxfam also work closely with, and receive funding from, institutions and governments, including the UK's Department for International Development (DfID), the European Union and the United Nations.
In 2010/11, more than 40 institutional donors contributed an all-time high of £173.5 million to Oxfam projects worldwide. And, in a year of large-scale disasters including flooding in Pakistan and the Haiti earthquake, institutions contributed a total of £115 million to Oxfam humanitarian responses. Suppliers - Oxfam suppliers deliver a wide range of goods and services they need to support their emergency, development and campaigning work. Oxfam have over 3000 suppliers in the UK, and many more based near to their overseas programs. Using local suppliers helps Oxfam keep operational costs down and supports local economies.
Conclusion of Tesco and Oxfam stakeholders groups influence on businesses Nowadays stakeholders have increased their influence on business activities. The community citizenship and social responsibility have been consistently included into business management. Customers, employees, communities and business partners are among key stakeholder groups that carry weight in company decisions and activities. Understanding the impact of these stakeholders on business is important for all businesses no matter what size it is.
Tesco and Oxfam have few similar stakeholders’ influences on the businesses. These include: Both stakeholder groups help for businesses to improve. Oxfam and Tesco stakeholder groups help for the businesses to deal with everyday issues. Both businesses pay attention at their customers. Both businesses pay attention at Non-governmental organizations such as Trade unions, communities and etc. Tesco and Oxfam make meetings with their stakeholder groups.
As you can see Tesco and Oxfam stakeholders have pretty much the same influence on business. Tesco and Oxfam stakeholders are the key people who help for organizations to improve themselves and reach their aims and objections no matter what they are or do. Also stakeholders of both organizations help for businesses to create new future plans, events and concentrate on issues affecting the business environment and efficiency.
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