What is the social resposibilty of business in the light of stakeholder
Answers
Stakeholder engagement is more than a social responsibility. It is a key factor in successful business operations. Stakeholders help guide company leaders with necessary information regarding business development, regulatory issues and public awareness.
Example, a construction company has several company trucks to service customers. The trucks are insured with AB Insurance, and all drivers are listed on the insurance policy. The insurance company is a stakeholder in the business, because it has a financial interest in protecting the company. If a new driver is hired, who has a bad driving record and the company doesn't inform the insurance company, the company has just added an unknown liability to itself and to the insurance agency. If there is a loss, the insurance company may be less inclined to believe a company that has a history of withholding pertinent information.