Business and Society

Business and Society

Description of the company and analysis of the various primary and secondary stakeholder groups, their roles, and relationships

The company I have chosen is Third Federal Bank. Third Federal Bank specializes in providing banking needs for a wide range of customers and is characterized as a medium sized public corporation. The services provided by the company cater to the financial needs of nearly all business groups. The company currently employees nearly 2,000 employees and records an annual turnover of $330 million. The company shares a vision of acquiring the market leader status in financial industry by offering innovative and quality services and financial products. The bank also enjoys a sound corporate social responsibility by funding a foundation which caters to the health related needs of individual children, who do not possess medical and insurance coverage.

The role of the stockholder is to exercise voting rights based on share ownership and to exercise their rights to inspect the company books and records, they have the power to have a negative or positive influence on the company (Phillips & Freeman, 2010).

The relationship between the company and the creditors is that the creditors lend money to the company for working capital and collect payments of interest and principal from the company. The company's creditors can have a negative influence on the company if it were to call in loans if payments are not made as arranged and utilized their legal authority to repossess or take over property in a severe delinquency situation.

The relationship between the company and its suppliers is that they provide the supplies for example the service, energy, equipment, stationery and other supplies that are necessary for conducting business (Shonfield, 2001).

The relationship between the company and its customers is very important. The role of the customer is to be willing to buy the company's goods and services, if customers purchase goods from the competitors or were to boycott the company's products this would have a negative impact for the business.

The employees have a very important relationship to the organization, where the company helps them to maintain a stable employment and rewards them with a fair pay for their work in return of their skills and acumen. Employees as a group have union bargaining power and possess information about the company's personnel, products and services that they could bring to the public attention that could have negative impact on the company.

The secondary stakeholders on the other hand can affect the company, even though they do not enjoy direct influence. This group includes the communities, nongovernmental organizations, the media, business support groups, governments and the general public. The community may play a role of working together with the company to achieve both the goals of the company and the community or by blocking its plans through lobbying for government regulations, or restricting licenses and permits (Phillips & Freeman, 2010).

The relationship between the media and the company is important because the media has the ability to assist in creating a positive or negative image of the company. The media can play a role in publicizing events that affect the public negatively or positively (Shonfield, 2001).

Government plays the role of adopting laws and regulations, issuing licenses and permits with the power to allow or disallow activities within the industry that would affect the company.

The general public represents another secondary stakeholder which is a part of the environment in which the company operates. The role the general public plays is to press government for action on matters that concerns the general public and seeks to condemn or praise a company through support by activists (Phillips & Freeman, 2010; Shonfield, 2001).

Recommendation of ways the stakeholders can influence the destiny of the company in question

The customers, suppliers, creditors and the employees as primary