Types of Stakeholders
Internal stakeholders:
These are any stakeholders that are within the organisation itself. Their objectives are likely to have a strong influence on how it is run.
Connected stakeholders:
Connected stakeholders either invest in or have dealings with the firm.
External stakeholders:
These stakeholders tend to not have a direct link to the organisation, but can influence or be influenced by its activities.
Corporate Social Responsibility
CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. At the end it forces corporations to drive towards sustainability.
Objectives of Motivations regarding Stakeholders
There are two psychologies exist with company while taking care of stakeholders.
1) Instrumental View of stakeholders:
This view motivates company to take care of stakeholders because if not taken care then these stakeholders will affect our company’s profit/market price/reputation etc.
The responsibility towards the stakeholders does not come with any feeling of moral obligation.
2) The Normative view of stakeholders:
This view motivates company to take care of stakeholders because they think it’s their moral duty towards stakeholders and they should good for society.
They do what is right and what they should do as a social responsibility rather than just focusing on profits.