Stakeholder Relationships Article Review
Biondo (2006) defines stakeholders as, “The original meaning of the word stakeholder was a person who holds money while its owner is being determined—a trustee for a minor, for example, or someone holding the cash until a bet is won. But in the past few years, the definition, in the progressive business world at least, has evolved to mean someone, anyone, having a perceived beneficial interest in the enterprise” (par. 2, 3).
Stakeholders are the employees and their families, suppliers, distributors, retailers, customers, and the shareholders. All of these individuals and companies have a stake in the company which makes them stakeholders. They all have an interest in the company.
The most critical stakeholder relationships for the professional purchaser are the suppliers. Instead of tension between purchaser and supplier there is common interest. The supplier has become a stakeholder. The supplier needs to sell their goods to stay in business. The purchaser wants the best materials for the lowest price possible. If the purchaser buys more of the supplier’s product(s) the costs will decrease for both companies.
The purchasing professional engages all relevant stakeholders in one way or another. Purchasing has a responsibility to the internal stakeholders through materials purchased. If the materials are defective, substandard, or nonexistent, the employee stakeholders cannot use the material. If the lines are shut down due to not enough supplies, or defective or substandard materials it affects all stakeholders both internal and external.
Purchasing engages external stakeholders through interaction with suppliers. Negotiations in costs, material quality, and on time delivery are a priority when dealing with suppliers. Quality materials to make the product the consumer will purchase gives the company a reputation with