IMR652 : MANAGEMENT OF BUSINESS RECORD

KEY STAKEHOLDER IN BUSINESS

Nayli Wahidah Bt Mohd Zawayi

Faculty of Information Management

Universiti Teknologi MARA

Puncak Perdana Campus

nelywahidah95@gmail.com

ABSTRACT

This article is present about key stakeholder in business. This article told the readers about definition of the stakeholder, the importance and also the type of stakeholders which are customer, employee, supplier and distributor, local community and also shareholder. Relationships with stakeholders are so important that they should be dealt with explicitly within the planning process. It is possible to prepare an objective which establishes the desired relationship with stakeholders and to identify within an action plan all the essential activities necessary to meet the objectives. Hope this article can give more information about business record management process.

Keywords: stakeholder, customers, employee, local communities, supplier and distributers

1.    INTRODUCTION

In business field or association, there are individual or gathering as a stakeholders. They assume liability for the business and that association. They additionally impact here and there the business. Stakeholder is an individual or gathering that enthusiasm for an association. . Stakeholder in a business are any substance that is affected by the operations of that business somehow. Long time ago, it being stated “any group or individual who can affect or is affected by the achievement of the organization’s objectives” Freeman (1984).

According to Roloff (2008), "Any individual or group who can affect or be affected by the approach to the issue addressed by the network" and Florea (2013) "Stakeholders are the persons, institutions, organizations, formal and non-formal groups which are interested or can be affected or which could influence the company decisions or actions".

Stakeholder are divide into two which are primary stakeholder and secondary stakeholder. “The instrumental stakeholder literature tends to focus exclusively on primary stakeholders, while the normative stakeholder literature tends to be more inclusive of secondary stakeholders”, Mish and Scammon (2010). Primary stakeholders are often assumed to have the most power, and by responding to their demands, it may be reasonable to assume that potential trigger events can be predicted, assessed, and resolved, says Handelman (2010). Primary stakeholders are highly visible because of the contractual relationships with those stakeholders that create options, decisions, and the assessment of their demands.

On the other hand, secondary stakeholder groups, such as competition, the mass media, social media, trade associations, and special interest groups (e.g., advocacy groups), do not have a contractual obligation with the firm nor exercise any legal authority over the firm, says Eesley and Lenox (2006). Competitors are identified as a key secondary stakeholder Ferrell (2011). A very common way of differentiating the different kinds of stakeholders is to consider groups of people who have classifiable relationships with the organization. Friedman (2006) means that there is a clear relationship between definitions of what stakeholders and identification of who are the stakeholders. The main groups of stakeholders are:

• Customers

• Employees

• Local communities

• Suppliers and distributors

• Shareholders

 The following Table 1 provides the opinions of different authors regarding the view definition of stakeholder

AUTHOR	AUTHOR’S OPINION AND DEFINITION
Freeman (1984)	any group or individual who can affect or is affected by the achievement of the organization’s objectives
Roloff (2008),	Any individual or group who can affect or be affected by the approach to the issue addressed by the network
Eesley and Lenox (2006).	On the other hand, secondary stakeholder groups, such as competition, the mass media, social media, trade associations, and special interest groups (e.g., advocacy groups), do not have a contractual obligation with the firm nor exercise any legal authority over the firm
Mish and Scammon (2010)	The instrumental stakeholder literature tends to focus exclusively on primary stakeholders, while the normative stakeholder literature tends to be more inclusive of secondary stakeholders
Handelman (2010)	Primary stakeholders are often assumed to have the most power, and by responding to their demands, it may be reasonable to assume that potential trigger events can be predicted, assessed, and resolved
Ferrell (2011).	Competitors are identified as a key secondary stakeholder
Florea (2013)	Stakeholders are the persons, institutions, organizations, formal and non-formal groups which are interested or can be affected or which could influence the company decisions or actions

2.0 KEY STAKEHOLDERS

2.1 EMPLOYEES

Employees have their jobs. They often have the skills for which there is usually no perfectly flexible market. As an end-result of their work, they expect security, wages, benefits, and meaningful work. Employees are sometimes financiers as well, since many companies have stock ownership plans, and loyal employees who believe in the future of their companies often voluntarily invest. One approach to consider the representative relationship is as far as contracts.

If you want employees to take a vested interest in the bigger picture, treat them like stakeholders. When you create an environment in which "jobs" are regarded more like "investment", employees will show up with passion, productivity and focus making your company more profitable, says Paul Spiegelman (2011).

Meanwhile, the employees are the ones who create and deliver the products or services that the customers consume. If we lose or antagonizes our best employees then customer service will suffer so we need to look after them. If we want to attract and retain top talent at all levels then we have to offer terms and conditions that are attractive, says Peter Drucker (2015). Brown and Lam (2008) Meta-analysis consisting of 28 studies and a cumulative sample size of 6,680 Employee Customer Employee job satisfaction leads to customer satisfaction and perceived service quality.

2.2 CUSTOMERS

Customers and supplier trade assets for the items and administrations of the firm, and consequently get the advantages of the items and administrations. Likewise with agents and workers, the customers and supplier connections are enmeshed in ethics. Organizations make guarantees to clients by means of their promoting and when items or administrations don't convey on these guarantees, at that point administration has a duty to redress the circumstance.

Peter Drucker (2015) defined the purpose of a company as this; to create customers. Without customers the company cannot survive so in almost all situations the customer needs have to come first. The customer can always to choose to take his business to a competitor so it is essential that we continue to innovate, to offer good products and good value for money.

An example of such investments is in the form of customer relationship management applications that help firms manage customer relationships more effectively throughout the initiation, maintenance, and termination stages of the relationship, says Mithas (2005). In turn, the effective management of customer relationships is essential to achieving high levels of customer satisfaction and loyalty, says Colgate and Danaher (2000).

2.3 LOCAL COMMUNITIES

The local community gives the firm the privilege to construct offices and, thus, it profits by the duty base and financial and social commitments of the firm. Organizations really affect local community, and being situated in an inviting group enables an organization to make an incentive for its different stakeholders. According to Kassinis and Vafeas (2006), community stakeholders also  include nongovernmental organizations and communities formed because of their geography.

In return for the provision of local services, companies are expected to be good citizens, as is any individual person. It shuold to keep whatever responsibilities it makes to the community, and operate in a manner way. We want to be a good citizen with healthy links to the local community. We want to be seen as a responsible employer who is providing a good place to work. This is important but is clearly a lower priority than above (Peter Drucker, 2015).

2.4 SUPPLIERS AND DISTRIBUTORS

It is also important to have suppliers who are focused on improving an organization. If suppliers find a better, faster, and cheaper way of making critical parts or services, at that point both suppliers and organization can win. Obviously, a few providers basically contend on cost, at the same time, all things being equal, there is an ethical component of decency and straightforwardness to the supplier relationship.

We need to collaborative with our partners to run business. Many have essential skills that we lack. It is best to builds good long-terms relationships. However, the partners also have their own agendas and most can be replaced if they underperform or a better partners appears (Peter Drucker, 2015). According to Frazier (2009), distributors share a high degree of external and internal strategic information with their suppliers when dependence asymmetry favors the distributor and when the transaction-specific investments of the supplier and the distributor are high

2.5 SHAREHOLDERS

Shareholder is a person, who has invest money in the business by buying offers of the concerned undertaking. The shareholders own the organization. They may well have advanced the seed capital which we have to begin so their requirements are essential. Shareholders are part of the Stakeholders.

According to Mayer Brown (2013), a “shareholder”, “member” or “holder” of a share (the terms are interchangeable) is only the person whose name is registered in the company’s register of members i.e. the person with legal title to the shares. Besides, all shareholders share the common objective of sustained long term growth, giving both capital gain and increasing income. But the reality is that even shareholders can come into conflict, says Aloa (2012).

Meanwhile, Frank Martin (2012) says shareholders are both partners with voting rights, who can take part in collective decisions concerning the company, and owners of equity securities, who are entitled to profit from selling them on. Besides, according to Julian Velasco (2006), shareholders have many legal rights, but they are not all of equal significance.

3. CONCLUSION

In conclusion, the stakeholders are important to the organization as a main source - assets which are important for association. Regardless of including themselves in the exercises of the association, stakeholders can control the solidness of association, as well as to shape corporate notoriety - specifically through choices, boycotting, tender reprisal, wage - charges, limitation of the asset. The bits of knowledge around there empower to express that the partners have the effect on corporate notoriety on the ground of the interrelationship between the association and stakeholders. Be that as it may, the significance of interrelationship between the association and stakeholders couldn't be dealt with unambiguously concerning all stakeholders.

4. REFERENCES

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