Topic > Stakeholders in Airport Decision Making - 1401

Stakeholders are those groups or individuals in society who have a direct interest in company performance and activities. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a company's best long-term interests are achieved by paying close attention to the needs of each of these stakeholders. The modern view is that a company has responsibilities towards all its stakeholders, that is, all those who have a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, subcontractors, pressure groups and the local community. While a company's directors have a legal duty to shareholders, they also have moral responsibilities to the goals of other stakeholder groups as a whole. Since a company cannot satisfy the objectives of all stakeholders in their entirety, they must make compromises. A company should try to meet the needs of these groups or individuals, but while some needs are common, others are in conflict. As this second track develops, the public and stakeholders are influenced one way or another and this can be positive or negative. One of the stakeholder groups are customers. Since they represent the most important part of the company, without them it is not possible to run the business. If you don't have customers, who do you produce for? They only want high quality products at fair prices and good services. By building the second runway they will be able to operate more flights and will attract more customers as they will be able to easily get the ticket. Ticket prices may increase as demand increases, which customers won't want. It will be convenient for their customers as there will be more choices of airlines flying there, they will be able to choose among them. The second group of stakeholders are the shareholders. Shareholders employ people who run the company on their behalf. They have nothing to do in the business, they are simply investing in the company and only care about the dividends they get as profit at the end of the year. In this case they will be very happy because with the construction of the second runway their profits will increase and they will receive more dividends. They just want to use cost-effective production, that is, reduce the costs of building the second runway as much as possible and raise prices.