INTERNATIONAL BUSINESS

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V b b b b b b b b b b b n n n n n n n n n n n n n n n n n b b b b h h jj h h n n

Thesis Statement: Utility of Stakeholder Theory for Sustainable Business
Introduction
Strategies employed by international companies to gain competitive advantage over their rivals differ from one company to another. One way of doing this is ensuring that they are environmentally conscious in how they partake their activities. In this modern age, they should not only focus on profit making but also consider how their activities affect the stakeholders of the business; hence the stakeholder model.
The Stakeholder Model
Unlike the traditional economic model that focused on the main goal of profit making, the Stakeholder theory focuses on more values and ways to make the stakeholders comfortable in the business. A business has more than the three employer,employee,supplier as stakeholders .The stakeholder model thus looks to balance out all these stakeholders in order to reduce any conflict that may arise from the all-inclusive environment. It is important for any company to recognize its social obligation in society in order to abide and custom its operations in the same line. Figure 5.23 presents the different dimensions of social aspect of community such as pollution, health care to employees among other societal obligations.
In order to measure a company’s social and environmental performance, the triple bottom- line accounting caters for these aspects. The author refers to a mining company in Indonesia that uses triple line accounting that enables it control its mining activites, ensuring that the locals are not affected by their activities through controlled activities.
Patagonia is another example that focuses on the sustainability of their operations through the stakeholder model. The approach used by Patagonia dismisses