Stakeholders Case

Stakeholders are stockholder, employees, BOD and those who are affected by the action of an organization such as customers, government, unions, competitors, suppliers and others. All these parties are known as stakeholders. Each of them has their own part that is related to an organization.

Corporate social responsibility is the duty of an organization to the society where it is being operated. When it comes to view of stakeholders on CSR, it could be different from every individual. But when it comes to views of Primary and Secondary stakeholders view, primary stakeholders like BOD, owner, employees generally thinks about how the business should achieve profitability so that they could invest more to provide as best wanted by the customers. This type of customer is affected by the performance of the organization.

On the other side secondary stakeholders like government, community, unions  thinks that the business should operate within rules and regulations and make profit within staying it, they should produce what is wanted by the consumers, avoid unhealthy practices on consumers and invest part of their profit for social cause like making hospitals, schools, roads, bus stands and so on.

Types of social commitment to understand the nature of social responsibilities are as follows:

·Economic responsibilities: 

The important responsibility of business is to maximize profits when possible and provide goods and services as per desire of society at reasonable cost. Beside this providing jobs to locals, paying tax are social responsibilities of company.

·Legal responsibilities: 

The business operated has to be within and bounded by rules and regulations. For the purpose of earning profit business should perform its activities legally and avoid illegal practices.

·Ethical responsibilities:

It shows that the notion of right and proper business behavior. Companies are expected to behave ethically but it is required or obligation.