Stake holder and share holder- Essay Example | Topics and Well Written Essays - 500 words

Stake holder and share holder- - Essay Example Most corporations run through the watch of shareholders. The shareholders demand obligations from the management of the firm. The shareholders have a say in the corporation depending on their share prices. The level of their financial measure in the corporation determines their level of influence. Shareholders share the profits of the company based on the percentage of their shares. It also applies to losses. Stakeholders are individuals who have interests in the corporation. The company has no obligation towards the stakeholders. Employees are the perfect example of stakeholders (James & Jerryl.1996, pp. 1-4). With the current world where globalization has taken effect, it is important for a company to pursue profitability. The corporations should fit themselves into the market economy using proper tools to maximize their profits. For good profitability, the company should have a certain responsibility, for example, social responsibility. It is evident responsibility, and profitability is contradictory, but they have to go together in any corporation. To ensure companies survive, they should produce high profits. The profits depend on the responsibility of the networks within the corporation, such as the people (Reed & Freeman, 1983, pp. 1-19). In most cases, shareholders emphasize on profitability over responsibility. It is the perspective of the shareholders. The shareholders believe the corporations have full control from the owners. They attribute the companys success to factors such as share price, economic profits, and dividends. In addition, they rely on the management to give in their best, for great success of the corporation. The shareholders do not believe responsibility will make the corporation attain success. Any society will not measure the companys success by their level of social responsibility, according to the shareholders perspective. Furthermore, their perspective does recognize the