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Custom Stakeholders essay paper sample

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The stakeholders of a company are the business parties that ensure its success and as such the management should be committed to their welfare. The satisfied stakeholders will be able to put more effort in their respective contributions which results in more productivity and efficiency. The stakeholders of a company include; employees, shareholders, customers and suppliers, governments, and communities. In this paper we examine management commitment to the welfare of their stakeholders for some of the top performing companies as ranked by fortune magazine.

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Management Commitment to the Welfare of Stakeholders

According to Wal-Mart Stores website (2010), the company which is ranked as the best in the latest fortune magazine has its management committed to respect all its stakeholders. The management does not take any stakeholder for granted but treats all individuals with dignity which is their most way to show respect. The company offers its customers with quality merchandise at the lowest price through their excellent customer service. They realize that the customers are their core reason to remain in business and should be treated with the utmost respect. All teams in the company have respect for individual employees which is a motivation to increase their productivity at work. The management commitment to mutual respect and support to all stakeholders have enabled the company to be successful and recognized worldwide.

 

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The other company whose management is committed to its stakeholders is Exxon Mobil which is ranked second in the latest fortune report. The company engages policy makers of the government in order to tackle the potential risks caused by climate changes. In addition, it is involved in community development projects which enable it to reach out to the surrounding communities. Also, the management is committed to discuss the performance and concerns of its shareholders through meetings and teleconferences so as to provide them with all information related to their investments. The company carries out research on changing customer needs and desire so as to develop products that meet the current consumer demands. This commitment helps the company to understand consumer needs as well as future industry trends. As for the suppliers, the company is committed to promote local suppliers of their raw materials by developing their capacities and working as partners. Furthermore, the company is committed to the development of its employees through answering their questions and discussion of the opportunities that exist in their business. This program is developed by Upstream Professional Development Committee which looks to the welfare of all its employees. These commitments to stakeholders have made Exxon Mobil to achieve its current success status (Exxon Mobil, 2010).

The Chevron Company is committed to partnership with all its stakeholders that have helped in building its productivity. It partners with the government, customers and communities so as to obtain mutual benefits (Chevron Corporation, 2010). However, a company that experiences legal or ethical misconduct could affect specific stakeholders. This will include loss of jobs by employees and loss of investment by shareholders when a company collapses out of ethical misconduct. An example of ethical misconduct that affected its stakeholders was the Enron Scandal (Sterling, 2002).

From the above research, it is evident that the management commitment to the welfare of stakeholders directly affects the company's productivity. Therefore, we conclude that for an organization to be successful, its management should be committed to the welfare of all its stakeholders.

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