Question

Explain the expectations of internal stakeholders in a commercial organisation.

Answer 1

Stakeholders who are involved in the business firms from within the organisation are known as internal stakeholders. They consist of owners/shareholders, and employees of the organisation. Shareholders as owners supply capital and have an important stake in the company. They assume the risks of business and participate in the profits and overall management of the company.

The expectations of Owners/Shareholders from a business concern are:

1. Safety of capital contributed by them
2. A fair and regular return (in the form of dividend or interest) on their capital
3. Capital appreciation in the value of their investment
4. Accurate, up-to-date and regular information about the working and financial health of the company.
5. Return of loans in time in case of creditors.
6. Equal participation in policy decisions of the company.

The expectations of Employees from a business concern are:

1. Security of job and continuity of service under congenial conditions.
2. A fair remuneration in the form of wages and salaries.
3. Safe and comfortable working environment.
4. Various welfare facilities such as housing, medical care, social security (in the form of pension, gratuity, provident fund, etc.), health, recreation, etc.
5. Opportunities for education, self-development, promotion and career growth.
6. Protection of trade union rights.