For instance the employees offer labor in order to have a good pay, good work conditions, and security. Through their labour, the organization operates to meet its financial and operational objectives (Post, 2002). Shareholders or business owners contribute their investments to the organization even as creditors offer financial or non-financial support in case the organization experiences a shortfall in resoures. This way, investors and creditors ensure that the organization has the resources neessary for its successful operation. Managers and directors contribute to the organization by overseeing its activities and performance and in formulating policies and strategies asnoted by Edward and Reed (2005). Suppliers provide the organization with the resources such as raw materials that it needs to produce its products. Without certain supplies, in spite of the organization rich endowment, no production can be effected. Yet again, without customers, the organization’s activities would be in vain. Customers pay for the goods and services that the company produces thereby contributing to the profitability of the organization. The government and trade unions somehow regulate the activities of the organization. While they may contribute to the organization’s operational and financial success, the two may also negatively impact on its profitability as a result of suh factors as taxes and higher pay demands (Post, 2002).
In conclusion, achievement of the organization is assessed in small parts, by reports of financial success and conformity, and partly by meeting the prospects of its stakeholders. Therefore, the stakeholders give the organization the challenge of working extra hard in order to meet their expectations as well as those of the organization An organization’s success is important to its stakeholders hence the ...
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