Responsibilities of a business to stakeholders

The responsibilities of
businesses to stakeholders
reflects what they are
accountable for.

1. RESPONSIBILITIES OF A
BUSINESS
Calvin Abdullah & Feyola Giselle Anamori

2. The responsibilities of
businesses to stakeholders
reflects what they are
accountable for.

3. Managers
Recognizing and appreciating the efforts of managers is
important. This can be done through formal awards, public
acknowledgment, or even simple gestures of appreciation. It
boosts morale and motivates them to perform better.
Recognition and Appreciation
Managers should be involved in key decision-making
processes, especially those that impact their departments
or areas of responsibility. This fosters a sense of ownership
and accountability.
Involvement in Decision-
Making
Ensuring transparent and open communication with
managers is vital. They should be kept informed about
the company’s goals, strategies, and any changes that
might affect them or their teams.
Clear Communication
Providing job security and a clear career progression
path is crucial for retaining talented managers. This
includes fair treatment during restructuring or
downsizing and offering opportunities for advancement
within the organization.
Job Security
Businesses should provide managers with competitive
salaries and benefits that reflect their roles,
responsibilities, and contributions to the organization.
This also includes bonuses, profit-sharing, and other
financial incentives.
Fair Compensation

4. Compliance with Laws and Regulations: Businesses must adhere to all relevant laws and regulations set by
the government, including labor laws, environmental regulations, tax laws, and industry-specific regulations.
Compliance ensures the legal operation of the business and avoids penalties.
Payment of Taxes: Businesses have a responsibility to accurately report their earnings and pay taxes. These
funds are vital for the government to provide public services and infrastructure. Tax evasion or avoidance is not
only illegal but also undermines the financial stability of the nation.
Ethical Business Practices: Beyond legal compliance, businesses should engage in ethical practices that align
with government policies aimed at public welfare. This includes avoiding corrupt practices like bribery and
adhering to fair trade principles.
Contribution to Economic Development: Businesses contribute to the economy by creating jobs, investing in
infrastructure, and fostering innovation. Governments expect businesses to play a role in economic growth,
which in turn benefits society as a whole.
Corporate Social Responsibility (CSR): Governments often encourage businesses to engage in CSR activities
that align with national priorities, such as education, healthcare, and environmental sustainability. By supporting
these initiatives, businesses can help address societal challenges.
Governments

5. Lenders
Businesses are
responsible for repaying
loans according to the
agreed-upon schedule,
including both principal
and interest.
Businesses should use
borrowed funds for the
intended purposes as outlined
in the loan agreement,
avoiding misallocation or
misuse.
Businesses must provide
accurate and timely financial
statements and reports to
lenders, ensuring that lenders
have a clear understanding of the
company’s financial health..
Timely
Repayment
Use of Funds
Financial
Transparency
If the loan is secured
by collateral,
businesses must
ensure that the value
of the collateral is
maintained and
properly managed.
Collateral
Damage

6. Foundation and Existence
Decision-Making
Provide funding
Owners
Main Stakeholder

7. Lets play a game!
RULES:
Everyone gets assigned to a specific stakeholder and recieves
different colored post its and one dollar of cash each.
Alexa: Owners
Mark: Government
Catherine: Managers
Kyle: Lenders
Feyola & Calvin will describe different scenarios and the person
at loss will have to give the cash to whoever will benefit at this
given scenario.
Example:
Repay a Loan: Owner gives cash To Lender

8. Resources
Zaichenko, M. (2022, May 23). internal and external stakeholder. Custom Software
Development Company; Mad Devs Group LTD. https://maddevs.io/blog/internal-
and-external-stakeholders-in-it/#:~:text=Owners

Content. (2018). A stakeholder is any individual, group or organisations that is
affected by a business and its operations. This includes everything from the owners
to the local community. There are five main stakeholders in a business.
Senecalearning.com; Seneca Learning Ltd. https://senecalearning.com/en-
GB/revision-notes/gcse/business/edexcel/1-5-1-business-stakeholders
‌
inghr.com/human-resource-software/meaning-and-key-responsibilities-of-human-
resources-hr-management/
Business AS & A Level Coursebook