Which stakeholders must companies satisfy? What role should stakeholders play in a firm’s internal code of conduct?
According to the stakeholder theory, it is the responsibility of an organization to satisfy all of its stakeholders (Phillips, 2003). I have the same opinion about the responsibilities of a company in relation to its stakeholders. As we know that the employees, clients, financial investors, the managers, and all other employees are the stakeholders in any business. A company must be capable of devising a system that keeps track of the needs of the stakeholders and satisfy them to the best possible limit.
Stakeholders play an important role in the firm’s internal code of conduct. It would not be wrong to say that the internal code of conduct revolves around the stakeholders. The stakeholder are in different relations with the company. Their interactions define the codes of conduct in an organization. Primarily the employees of an organization are responsible to form the code of conduct of an organization, keeping in view the needs and requirements of the other stakeholders in mind.