Does a Corporation Have Other Stakeholders Other Than Its Shareholders?

Stakeholders include the people and groups affected by a company's business activities. The emphasis on meeting shareholder, or owner, expectations for high profit has been somewhat tempered in the early 21st century by calls for a more balanced stakeholder approach. Along with earning a profit, a company faces social and political pressure to act responsibly toward customers, communities, employees, suppliers and government entities.

Customers Provide Revenue

1. Customers buy company products and services and provide the revenue necessary to earn profit and continue operations. Some companies have put more onus on the quality of the customer experience. This means conducting research over time to find out what customers like and don't like about your products, services and the overall interaction with your company. Consistently meeting the needs of customers, communicating with transparency and integrity in promotions and delivering a great experience go into the development of a loyal customer base.

Communities Provide a Home

1. Communities are commonly considered a separate stakeholder group than customers. Communities in which companies operate essentially provide a home. As a corporate citizen of the community, companies are often expected to participate actively and ethically in the community life. This includes giving to local charities or education programs, as well as allowing employees paid time to volunteer. Small businesses have long benefited from their community presence, and some larger corporations have placed emphasis on conveying a localized community approach through their own giving and involvement.

Employees Support the Business

1. A company that views employees as stakeholders rather than a means to an end more often treat employees as key assets. Employees produce, sell or support company operations and interaction with customers and the public. When treated with fairness and respect, talented employees provide a competitive advantage for a business. Fair compensation, non-discrimination, openness in communication and a listening attitude to feedback are among the things companies who value employees as stakeholders provide.

Suppliers Transact Business

1. Suppliers and business partners play a major role in ongoing success of companies. Whether large or small, businesses rely on other companies for supplies, resale products or services. Treating these associates fairly, paying bills on time, communicating openly and sharing the value of providing for the end customer leads to strong partner relationships. Essentially, businesses need to look out for the hands that feed them, and their customers.

Governments Regulate Business

1. The way a business operates legally within a local, county, state or federal jurisdiction is defined by governments. Companies therefore have a stake in public policy and regulations that impact their industries. Business leaders and hired lobbyists often spend considerable time building relationships with local officials to share information, support industry or company causes and gain insights into pending opportunities and threats. Taxes are a key concern for most businesses, for instance. Encouraging local leaders to maintain low business taxes by promoting hiring and community benefits is one example of how a company may leverage relationships with government officials.