Sunday, February 5, 2017
Are companies obligated to outside stakeholders?
When I was studying in college, I read that a corporation has internal stakeholders and external stakeholders. Stakeholders mean that entities and individuals have some interest in the business of corporations. Internal Stakeholders are obvious to everyone like the employees working for the company, their shareholders, their investors and anybody involved in doing business with them. Outside stakeholders are the general public at large; the regulators who make sure the corporations are following the rules and laws laid down by them so that they don’t screw up their corporations and other outside entities that have an indirect connection with the corporation. Now I will not talk about the internal stakeholders as it is obvious they are the direct beneficiaries of whatever happens to the corporations. I will only talk about general public at large who have a stake in the well being of the corporation and vice versa. In an effort to gain favorable views of their corporate activities, my previous places of employment use to advertise that how they are helping communities by their contribution monetary or otherwise in the growth of neighborhoods of which they are part of. I used to get email messages like volunteer for mentoring disadvantaged kids or contribute in the improvement of playgrounds and build houses for the homeless. During Christmas time, they use to collect toys for the kids (for which there was sometimes an extensive and expensive wish list which I did not agree). Then there was mini marathon running to promote healthy habits in employees.