Total Quality Management

March 12, 2009

Stakeholders and Corporate Social Responsibility

Let’s begin this topic with quotation of Robert W. Lane, the Chairman and CEO of Deere & Company, “If you don’t have honesty and integrity, you won’t be able to develop effective relationships with any of your stakeholders.”

These stakeholder groups form the basis of success and failure of the business. Stakeholders are individuals or groups that have interests, rights, or ownership in an organization and its activities. Customers, suppliers, employees, and shareholders are example of primary stakeholder groups. Each has interest in how an organization performs or interacts with them. These stakeholder groups can benefit from a company’s success and can be harmed by its mistakes.

Secondary stakeholders are also important because they can take action that can damage or assist the organization. Secondary stakeholders include governments (especially through regulatory agencies), unions, nongovernmental organizations (NGOs), activities, political action groups, and the media. (more…)

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