The Relationship Between Business and Stakeholders
A business and its stakeholders depend on each other to succeed. Stakeholders rely on the business for products, services, jobs, or other benefits. At the same time, businesses need stakeholders for support, resources, and growth. If this relationship is positive and balanced, both the business and stakeholders benefit.
How Businesses and Stakeholders Work Together
1. What Stakeholders Do for Businesses:
Stakeholders help businesses in different ways. For example:
- Customers buy products or services, giving the business income.
- Employees work to produce goods or provide services.
- Suppliers provide materials or goods needed by the business.
- Investors give money to help the business grow.
- Communities and Governments create a safe and supportive environment for businesses to operate.
2. What Businesses Do for Stakeholders:
In return, businesses must meet the needs and expectations of their stakeholders. For example:
- Providing high-quality products and good service to customers.
- Paying employees fair wages and offering safe workplaces.
- Paying suppliers on time and building good relationships.
- Giving investors profits on their investments.
- Following laws, protecting the environment, and supporting local communities.
Example: A Bakery Business
Imagine a bakery that sells fresh bread and cakes:
Customers: Customers want fresh, tasty, and affordable products. The bakery ensures the quality of its food and friendly service to make customers happy.
Employees: The bakery employs bakers, cashiers, and delivery staff. It pays them fair wages, provides good working conditions, and offers training to help them improve their skills.
Suppliers: The bakery buys flour, eggs, and other ingredients from suppliers. It ensures timely payments and long-term partnerships.
Investors: If the bakery has investors, they expect profits. The bakery grows its sales and shares profits with them.
Community: The bakery operates in a local area, so it minimizes waste, hires local people, and supports community events.
Outcome:
When the bakery takes care of all its stakeholders, customers keep buying, employees stay loyal, suppliers trust the bakery, and the community supports its growth. This makes the bakery successful and ensures everyone benefits.
Conclusion
The relationship between a business and its stakeholders is based on mutual support. Stakeholders give businesses the resources and opportunities they need to succeed, while businesses meet the needs of their stakeholders in return. When this relationship is balanced and positive, it helps the business grow and creates benefits for everyone involved.