Business and Society - Research Paper Example

From then on, strategies should be developed in order to incorporate their participation in forming a coalition which can divine special assistance to the company in its entirety. Stakeholder analysis is particularly important because of the increasing interconnectivity nature of the world. Not one corporation is fully in monopoly of one particular business because there are many other entities involved, all with their own interests and motives. In order to be successful as CEO, it is imperative to be able to identify the key stakeholders and take advantage of the scenario.

Stakeholders have varying interests which are dependent on their roles and relationship to the company. In identifying these roles, only then can a better understanding be founded on how to best manage them. There are two kinds of stakeholders; the primary and the secondary stakeholders. By definition, the primary stakeholders, also known as the market stakeholders, are the ones directly benefitting and/or affected by the performance of the corporation or a particular business activity (Akpinar, p. 52). These may include customers, employees, stockholders, creditors, suppliers, and basically anyone with financial and functional interest to the operation or business situation.

The secondary stakeholders, who are also referred as non-market stakeholders, are individuals or groups which are not directly affected by the results or consequences of the company but still hold interest to the corporation. Such as these are the money-lending institutions, government agencies, the media, competitors, or even the general public. Secondary stakeholders are also important not only since they can also be primary stakeholders, too, but also because they influence the empowerment or the limitation of the capacity of the operations of the corporation.

Like dominos, many individuals, groups, and other organizations are affected and involved with the actions of a company. Problems facing the