In 1916, the car manufacturer Ford made enormous productivity gains. It decided not to give the shareholders with profits enormous dividends, but chose to increase the wages of employees, and to decrease the price of its cars in order to develop its market. Three years later, the supreme yard of Michigan agreed with them. Though justice gave a disadvantage to Ford, history gave back its grace through Freeman's stakeholder concept in 1984, 'A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objective' . Freeman's stakeholder concept changed the perception of the environment by managers, and, extended a new field in the corporate strategic management. The Corporate Social Responsibility (CSR), which is a key success for a firm which wanted to develop on a long-term activity and get a stakeholders value instead of a shareholders value. Firms have to develop economic, legal, ethical, and philanthropic responsibilities, economic being profitable, legal by obeying the law, ethical by being an ethic and philanthropic by being a good corporate citizen.
[...] For that they use general assemblies. In my opinion, a company who wants to get a CSR policy has to integrate its shareholders in the strategy in order to explain its objectives and its method to pursue them. The main method of the organisation strategy is to convince shareholders to follow the strategy adopted by managers. Shareholders want to be integrated into the strategy. So the aim of the managers is to discuss the objectives made by the shareholders and to use benefits for investments in corporate social responsibility value Secondary stakeholders and the organisation 1. [...]
[...] Finally an organisation's strategy has to introduce their stakeholders. In fact, they are becoming essential for a firm who wants to make long term business. Companies have to learn to categorize stakeholders and their expectations (economic, social, environmental or ethic) in order to respond to demands from each type of relation with stakeholders. Thus it will constitute an environment based on direct and indirect partnerships about CSR and it will be able to make long term business. Appendices N°1 Expectations of the Expectations of the organisation employees Efficient staff; Career development; Good quality of production; Formation; Reduced costs. [...]
[...] If the firm wants to delocalize and accept the decision made by the government, it should replace employees in other companies and pay the extermination of its old establishments Environmental and social activists groups See appendices n°7 We can actually see the shift of power from governments to organisations: environmental and activist social groups. The aim of these groups is to defend one cause. So who are these groups and what are the means used by these groups to defend their cause? Environmental and social group activists can be: - People united to safe humanity; - Friends of the Earth; - Consumers union; - Employees union; - People for the Ethical. [...]
[...] The strategy of the organisation has to take into consideration the customer because they are the first source of benefits. So, companies are obliged to respond positively to their expectations in order to create a long term relationship. Thus, companies have to cope with customers all time and have to be able to respond to them quickly. For that companies develop new services into their organisations for example, the concept of Customer Relationship Management which created a customers marketing department in several companies. [...]
[...] Justice is a real cost and it can be really expensive for a firm. For example conflicts about tobacco or oil slick. That is why certain shareholders put pressure on the strategy in order to avoid these types of phenomenon. Firms are starting to have more attention on environmental factors. For example they reduce their cost of production economizing necessary energy for the fabrication of products. Firms can take competitive advantage when there are able to anticipate expectations of their stakeholders such as the reduction of toxic gas emissions. [...]
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