There are various examples of stakeholders within the scope of a company itself. When asked about a party that has an interest in the establishment of a company, none other than stakeholders. Stakeholders can be said to be one of the factors a company can run well or not.
Stakeholders in a company itself can be divided into two, namely internal stakeholders and external stakeholders. A complete explanation along with examples of each stakeholder can be read by Sinaumed’s below.
A. Know Stakeholders
Stakeholders can be said in Indonesian as stakeholders. Stakeholders are generally found in business companies and even organizations and institutions. Stakeholders are counted as an important part of a company. Stakeholders have an active and passive role in efforts to develop the goals of a company.
The existence of stakeholders is needed in the continuity of a company. That is because stakeholders can become supporters in moving forward or developing business activities of a company. Basically, stakeholders are a group of people who fulfill a role in the company. For example, the role of a stakeholder is as a shareholder or provider of capital. This role is very important because it can help companies run their business smoothly and grow.
As quoted from the Corporate Finance Institute, stakeholders or stakeholders are a group of parties from individuals, groups or communities who have an interest in the existence of an organization or company. Stakeholders here have a very influential role regarding business continuity.
Stakeholders are actually divided into two types, namely internal and external stakeholders.
B. Types of Stakeholders
1. Internal Stakeholders
Internal stakeholders are a group of stakeholders within a company. These internal stakeholders have a direct interest in the company as well as greatly influence the running of a business.
These internal stakeholders also have ownership and have a role in determining the company’s decisions in carrying out its functions. That important role in a company is what makes them referred to as internal stakeholders. The parties included in the ranks of internal stakeholders are such as business owners and employees.
2. External Stakeholders
By definition, external stakeholders are the opposite of internal stakeholders. If internal stakeholders are parties who have an interest in a company, then external stakeholders are parties who have part of the business stakeholders outside the company. Stakeholders from outside the company do not have a structural relationship of ownership or job responsibilities with the company.
The role of external stakeholders is actually the same as that of internal stakeholders, namely mutual impact on the company. External stakeholders have a role that can influence the decisions of internal stakeholders of the company, both from owners of capital to employees.
Parties that are included in external stakeholders or as company stakeholders from outside the company include customers, suppliers, investors, competitors, banks, government, and so on.
C. Examples of Stakeholders and Their Roles and Functions
Stakeholders or stakeholders in a company actually have different roles, it is adjusted to the functions and responsibilities they carry out. However, the two stakeholders from the company have the same goal in an effort to develop the company, both in terms of business-related needs to economic needs.
After understanding the two types of stakeholders, from internal to external stakeholders. The following are examples of internal stakeholders and examples of external stakeholders and their roles and functions.
1. Example of Internal Stakeholders
a. The company/organization itself
The first example of internal stakeholders, namely companies or organizations included in the part of stakeholders who have relationships related to the interests of all stakeholders. The company itself plays an important role in terms of managerial decision making.
Managerial decisions made by the company will provide a number of useful information both mandatory and voluntary.
b. Shareholders or Owners
The second example of internal stakeholders, namely these shareholders act as investors who provide capital to run the company. These shareholders also carry out a supervisory function within the company in order to monitor employee performance and the company’s financial condition.
c. Employee
The third example of internal stakeholders, namely the performance of a company will also depend on the performance of its human resources. In a company, employees certainly have an important role where they are the people who interact directly with the production process.
Comfortable and at the same time harmonious conditions for employees will result in good cooperation, regardless of their interests.
2. Example of External Stakeholders
a. Supplier
The first example of an external stakeholder, namely a supplier or commonly called a supplier is a party responsible for providing raw materials or basic materials that will be used for the production process in a company. That’s what makes suppliers become external stakeholders of a company.
On the one hand, suppliers benefit because the products sold already have certain customers. However, if suppliers encounter problems that cause delays in providing raw materials. So it will result in the production process of a company being disrupted so that it hampers the marketing and distribution process. This will also indirectly affect the supply chain or supply chain management (SCM) to be late.
b. Consumer
An example of the second external stakeholder, namely consumers, is a party that uses or uses products from a company. In this case, consumers are not only as users, they are also observers or observers of the products being marketed. Whether or not a product is used by consumers becomes a parameter in the final sales process. In this case, the success of attracting as many consumers as possible is the key in making progress and development by the company.
The development of a company is largely determined by the interest of consumers. That should be the basis for the company to always provide products that match the wants and needs of consumers, both from product quality to the purchase value of the product. Therefore, consumers have a very important role so that they enter as one of the external stakeholders of a company.
c. Banks (Creditors)
The third example of external stakeholders, namely in an effort to set up a company, it will be difficult if you do not have very large capital. It has become a common way in doing business to use debt in developing, or even expanding a company. Therefore, banks or natural persons or financial institutions enter into the list of external stakeholders of a company.
Creditors are parties that have an important role for the company. However, creditors don’t just lend money easily. There are many processes that a company must go through in order to get a loan, of course this can be seen from the company’s ability to return the money at a predetermined time and interest, whether by means of installments or in cash.
d. Competitor
The fourth example of external stakeholders, namely competitors become one of the external stakeholders of a company because they have a role as competitors. Competitors are companies that produce the same products or services in a particular industry. A company must realize the importance of competitors, because competitors can encourage companies to be more innovative in creating products or services.
For example, the competition between Honda and Toyota. The two automotive companies from the country of Sakura have long competed in Indonesia to win market interest. A competition in any business world can increase the demand or demand for an item to increase.
e. Government
The last example of external stakeholders, namely the government is one of the external stakeholders that has an important role for a company. The government is directly the party that has the power and authority to issue development permits to the operation of a company. As policy actors, companies must build good relations with the government in the areas where factories operate because this can determine the long-term sustainability of a company.
Well, internal and external stakeholders have the ability to influence the various economic resources used in operating a company. Of course, this makes the strength of the function of each stakeholder, from internal stakeholders to external stakeholders within the company, to be determined based on the large or small amount of power they control over these sources.
In determining stakeholders, the company will choose based on the interests and impacts that can be given. As a result, the company can take actions that can create a harmonious relationship between the company and its stakeholders.
D. Stakeholder Social Responsibility
After understanding the meaning and examples of stakeholders to their functions and roles, the following will discuss further about corporate social responsibility to stakeholders. To create a balance between the roles and relationships of each stakeholder. Companies should take action as a form of social responsibility. The concept of social responsibility is usually known as Corporate Social Responsibility or CSR. This social responsibility needs to be carried out by a company if it wants to get guaranteed sustainability in operating for the long term, this is of course one way to maximize profit.
So, here are five forms of corporate social responsibility to its stakeholders, including:
1. Social Responsibility towards Employees
A company can run optimally if it has employees who work according to procedural provisions. Therefore, in carrying out work in a company, business actors must provide social responsibility to employees.
Forms of social responsibility that must be given by companies to employees, such as providing comfortable and proper facilities for company employees, providing certainty of wages in accordance with work contracts, and not discriminating.
2. Social Responsibility towards Consumers
In the development of the business world, companies must not make consumers only as buyers who use products or services. Now, companies must view that consumers are partners of the company. This is done so that companies value consumers better, not only take advantage of consumers’ purchasing power.
Companies can use a Customer Relationship Management or CRM approach so that they can provide good profits and customer loyalty by selling products or services in the hope that they can be reordered.
3. Social Responsibility towards Suppliers
Collaboration between companies and suppliers must be carried out fairly in pricing and right to sell, encourage tolerance to build long-term business relationships, always exchange information with suppliers and make timely payments to suppliers.
4. Social Responsibility of Shareholders
In making a decision, the company must involve all shareholders. Because the company is responsible for investor satisfaction, and all decisions taken by the company are in the interest of investors. This relationship must be maintained so that the company runs according to the desired goals.
5. Social Responsibility towards the Environment
Social responsibility here refers to environmental sustainability. Some common things that companies do are to provide benefits to the surrounding community, such as in the fields of education, health, public facilities, and welfare.
That is the explanation that Sinaumed’s needs to know along with the functions and roles of internal stakeholders as stakeholders from within the company as well as external stakeholders as stakeholders from outside the company. Knowledge or insight about stakeholders will be very useful in understanding how the process of establishing a company, operating a company to the social responsibility given by the company to its stakeholders.