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Managing People and Organisation

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STAKEHOLDERS V SHARE HOLDERS
This article is basically about the importance of the ‘Firms’ which are both Stakeholders and Shareholders but the Fact is local and big businesses are focusing more on the consumer, ‘shareholder’ rather than the Stakeholder. The wants and needs of the Shareholder come first. Companies are more focused on customer satisfaction but there is some that put their staff before customers such as ‘John Lewis’. ‘Short term pursuit of gain is rarely likely to benefit a business in the long run anyway’. The point being made is companies want to maximise the values of their Shareholders but don’t want to put Stakeholders at risk as they wish to make the business a lasting one and the employees are important to max a long-term shareholder as quoted ‘If retaining talented staff is a managers’ hardest task, Devotion to employees may be the best way to maximise long-term shareholder value.
I agree with the statement on the maximisation of the shareholders but I also think it is important to split it equally between the stakeholders and shareholders. They both play a vital part internally and externally. But with Stakeholders Plans and adjustments must be made for a business to adjust and thrive so maybe it is best to put the stakeholders before the shareholder. It has to be balance as the Stakeholders wish to keep in the shareholders happy as they are the Managers, Owners, Employees and Customers who will keep the company rolling forward. I think without the shareholders the stakeholders are nothing because if the businesses plan isn’t going accordingly the business will be in a critical position or fail. Quote in the End paragraph. ‘This is a phoney war between shareholder capitalism and stakeholder capitalism…’ I do believe that it is in fact true as at the end of the day if you own a business you don’t really care about the customers, that’s

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