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Organizing Organizational Stakeholders

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Web Exercise 1- Diagnosing Organizational Stakeholders

Select a company and retrieve and analyze publicly available information over the past year or two about the company. This information may include annual reports, which are usually found on the websites of publicly traded companies. Where possible, you should also scan full- text newspaper and magazine databases for articles published over the previous year about the company.

Students will select a company and investigate the relevance and influence of various stakeholder groups on the organization. Stakeholders can be identified from annual reports, newspaper articles, website statements and other available sources. Stakeholders should be rank- ordered in terms of their perceived importance to the organization.

Link: http://annualreport.ayala.com.ph/uploads/Ayala_2012_Annual_Report.pdf

CHOSEN COMPANY: AYALA

1. What are the main reasons certain stakeholders are more important than others for this organization?

Degree of influence of stakeholders will vary depending on nature of business activities and who holds power. This is because they are the owners of the company. Based on importance, the shareholders are on top. The company gets the source of funds from the investments of these shareholders. These shareholders (as stakeholders) typically exert high influence - voting on key company decisions for they are the founders of this company and make very major decisions that can greatly affect the futurity of the company. The interests of shareholders should be a significant legal, strategic, and self-preservation concern to any executive. And since shareholders’ interests tend to revolve around returns on their investment (particularly earnings, market capitalization, and stock value), the company’s leaders should have those interests.

2. On the basis of your knowledge of the organization's environmental situation, is this rank order of stakeholders in the organization's best interest or should other specific stakeholders be given higher priority?

The rank order of stakeholder is a productive way for their business because as stated in their data, they were able to meet their goals and raise their profits. They were able to fulfill their aspiration of doubling their net income and delivering a sustainable return of 15%. And also they were able to make their plans in the power and transport infrastructure businesses.

Our group thinks that customers should also be given utmost priority since customers react to a company and its offerings with enthusiasm and excitement, investors will follow. Because when a company demonstrates that it’s doing something unique and extraordinary that really matters to a growing market of loyal customers, investors pay attention.

3. What societal groups are not mentioned as stakeholders by the organization? Does this lack of reference to these unmentioned groups make sense?

Societal groups not mentioned as stakeholders by the organization include government, community, trade unions, owners, investors under government which include government regulatory agencies, government legislative bodies, government tax-collecting agencies. Others include industry trade groups, professional associations, non- government organizations, advocacy groups, competitors, local, national and global communities, future generations, media and former employees.

Lack of reference to the unmentioned groups can lessen the public information given of the company’s real status, thus it may lead to more or less investors whether the company is at its peak or downfall. If the people involved contain less background on these unmentioned stakeholders, their decisions might not include them and unknowingly might have been a huge impact on the standing of the company in the business industry. Although some might be better of f not mentioning for their protection, however, their decisions might not be heard especially when new individuals have come to be part of the company and does not even know that these are the stakeholders of the company. If the public knows that these stakeholders are part of the company, investors would likely increase and helps the company to be stable.

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