How stakeholders influence business activities Essay

How stakeholders influence business activities - Essay Example 26). The key groups of stakeholders include but are not limited to employees, business partners, customers, and communities. â€Å"[T]he type of interest and degree of influence of each group varies between different types of stakeholders and different types of businesses† (Carysforth and Neild, 2000, p. 189). Stakeholders carry weight in the business activities as well as the decisions made by the company. Owners Owners are best able to judge the performance of a business. If a business makes more profit, it increases the likelihood of re-election of the directors of business in the subsequent elections. Owners assume the prime responsibility of establishment of the goals and objectives of a business, though the decisions are made in due consultation with other groups. For example, the directors that assume the responsibility of management of the company’s affairs on the daily basis can decide to prioritize the increase of sales instead of prioritizing the profits. Own ers influence the business activities by controlling the finances of the business. ... Government Government is one of the most important stakeholders in any kind of business. Responsibility comes with authority of the government. It is primarily the government’s responsibility to ensure that the product or service a company sells is not against the norms and values of the culture of the society in which the business operates. â€Å"The government can impose rules and regulations on businesses to ensure that customers are not exploited and employees are working in safe conditions† (Seliet, 2000, p. 90). Apart from that, the government obliges the business owners to pay tax on the earnings they make so that the money made from business can also be used for social services and the benefit of the society as a whole. Government regulates the business and ensures that the practices of the business do not subjugate or offend the rights of any community in the society. Governance and social responsibility Governance of a business means development of its vision, mission, and objectives which are overseen by the owners of a company in small businesses. Traditionally, maximization of the profitability of a business has remained the main focus of governance as well as all operations related to a business. In the present age corporate social responsibility happens to be the second most important depicter of the reputation and image of a company among the consumers whereas the quality of product or services of the company is the first. â€Å"According to some scientific research, customers do not evaluate companies based only on the features of their products and services, but also on what business practices they are engaged in, how their products are produced, and what effect on society the company has† (Kaufmann and