Stakeholders

The fundamental definition of a stakeholder is a person, group or organisation that is affected or can affect a business or organisation’s actions, beliefs or objectives. There are two main types of stakeholder- internal and external. The title of ‘Stakeholder’ is usually a title given by the stakeholder them self, although all stakeholders are affected by and affect an organisation in different strengths and in completely different ways. As the name suggests, internal stakeholders are those that work within the business and are benefited by such factors as profitability and stability.

Examples of this type of stakeholder include employees, managers and directors. The first internal stakeholder that I will explore is the employee. Employees are individuals that are employed to work for either a single person or whole organisation under a contract of employment. A contract of employment can be written, oral, implied or expressed but is always the terms and conditions in which an employee must work under to receive an agreed salary or wage. In every contract of employment, it is always agreed that the employee is obliged to carry out allocated tasks and assignments to his/her best ability.

On the side of the employer, there is always the obligation to protect his/her employee from harm and to compensate their employee with an equal compensation for any work-related harm which may occur to the employee. It is most definitely within the interests of the employee to make sure that his/her employer follows the terms and conditions of the contract of employment and also within the interests of the employer for the employee to follow the terms and conditions of their contract of employment.

Although the main interest of an employee is to earn the highest salary possible, the factors that cause his/her employer to pay their employees highly are much more complex than mere choice. If the employee’s business is not profitable, there is very little chance of pay rises, long holidays, a large number of authorised sick leave and promotion occurring. It is for this reason as to why employees take interest in the profitability and success of their business.

Also, if an employee’s business is unsuccessful, some may have to be made redundant. Job sustainability is of very high importance to most employees and will do everything their power to make sure that they are not made redundant and they therefore must try harder to keep their job. In addition, employees expect respect and truthful, effective communication to come from their managers- if an employee does not receive this, an employee may feel unnecessary, unwanted or an outsider from what should be a very strong team within Coca Cola Wakefield.

However, conflict may occur between an employee and manager as their interests tend to differ. Due to the fact that a manager’s main role in a business is to be responsible for a specific sector of employees in a business, a manager’s fundamental interest is for the employees in which they are responsible for to work as hard as possible will as little leave as is allowed, thus accumulating maximum capital for the business.

This position is often referred to as a profit and loss responsibility and most of the company’s sales, marketing and daily operations of the business are overseen by the manager. The manager is responsible for a large number of duties, such as planning, delegating, choosing staff, organising jobs and operations, and decision making. A manager’s role has a large amount of authority to ensure that the company attains its desired profit results. Not only this, but because the manager is higher up the organisational chart and therefore has a large span of control.

Due to the fact that Coca Cola Wakefield employs over 500 staff, it is of the upmost importance that the managers of Coca Cola Wakefield do not merely pay the employees as little as possible for the business to be its most profitable as this, as the July 2007 employee strike proves, can have devastating effects on the business. A prime example of the conflict which occurs between the interests of employees and managers, and the stakeholders within a business is the 48 hour walkout which occurred due to pay- which was seen by a vast number of employees and their supporting unions as far too little.

Regional Officer Davy Hall went as far as to say that… “Their hard work has delivered the profits for Coca-Cola Enterprises. Their mortgages, gas bills and council tax have all increased but their pay has fallen flat,” which, in my personal opinion is very much a reasonable purpose for strike and should certainly not justify Stephen Moorhouse (the Vice President of Coca Cola Enterprises at the time) to merely say that “We cannot justify a settlement of almost double the 2007 norm and feel this would be unfair to the rest of our associates across the rest of the British business. ”

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