Who are the major stakeholders of the organization and what consideration should be made to insure their (stakeholder) participation in developing management strategy?
Introduction: in any limited organization the stakeholders play an important role, because stake holders are the key elements of any organization. There are two types of stakeholders, internal and external, both play an important role to achieve strategic goal of an organization.
An individual or group with an interest in the success of an organization in delivering intended results and maintaining the viability of the organization's products and services. Stakeholders influence programs, products, and services. (Online)
Stakeholders of Suzlon Energy:
Suzlon stakeholders are divided in two parts, Indian stakeholders and Foreign stakeholders
Indian Stakeholders promoters groups
(1) Individual Hindu undivided family:- this category of share holder is the major stakeholders of the Suzlon energy which have 43% of total share of the company.
(2) Bodies Corporation is the second stake holders of the company 6 corporation bodies have 9.50% of share out of total share.
There is no any foreign institution or individual are involved in the company stake.
In public shareholding Mutual Fund (UTI) is the major stakeholder of the company who has 6.44% of share out of total. Financial bake institute is the second investor of the Suzlon share which is 0.63%. Some foreign institution has invested about 235783372 which is 15% of total.
Stakeholder's participation in developing management strategy
In any organization, stakeholders play an important role. The activities of the business affected by the stakeholder, they are directly or indirectly interested in the business, and they remain in connection with business constantly. In Suzlon Energy stake holders play an important role to develop management strategy.
Company responsibility towards the stakeholders
Shareholders are the main investors of the company, they invest the money in the company for good return, so the company strategy should be relevant to make good profit and development, if company make more profit then shareholders also gain good rewards. To give good return on the investment company should have good management strategy.
Management and employees:
management and employee the important capital of the organization, the success of the business is depend on the management and employee because they run the company effectively so there is company responsibility towards their employee to pay fare remuneration and make good working condition.
Customers and suppliers
Customer and supplier are the key stakeholders of the Suzlon Energy, company responsibility is to solve the customer problem and provide good services, apart from this they should encourage customer to increase the selling by providing fair prices and qualitative product. On other side company have to build long term relationship with their suppliers by encouraging them by introducing JIT (just in time production system).
Banks and other financial organisations
By encouraging banks and other financial organization to provide enough fund as and when required by the company on good terms but it is possible when company develop good business strategy.
By following the government rules and regulation, and taking part in various government schemes to take advantages of subsidies and relief.
For local community development Suzlon Foundation organization develop several projects for the local community development. To encourage the surrounding community company built schools and colleges for education development. Suzlon foundation also organize some health awareness programme for the local community.
Example of responsibility to that stakeholder
Good return on investment
Fair pay and working conditions
Regular business and prompt payment
Fair price and safe product
Jobs and minimum disruption
Employment for local community