A presentation on

Stakeholders and the social

contract
 Presenters
Naseem Ashraf
Sohail Anjum
Sehar Khawer
 Content
social contract
stakeholders
multiple stakeholding
classification of stakeholders
stakeholder theory
governance and stakeholding
relating corporate governance and
corporate social responsibility
conclusion
 social contract
"Relationship between
individual,society and the
government" Organization 2

Government Organization 1 Society

Individulas Groups
 Stakeholders
The person or entity concerned with your
organization or which can influence the
organizational activities
Major stakeholders:
employees
customers
suppliers
distributers
 Special group of
stakeholders
Generic group:
government
local community
society
Future and Environment
pollution
waste
competition effect
factors of production uses
per capita income
 Multiple stakeholding
same person belongs to several
stakeholder groups
Example
A person have shares of PIA and also is
the customers of PIA because he is taking
PIA's services,he may be part of local
community as well.
Classification of
stakeholding

voluntary

Internal External

Involuntary
 Stakeholder theory
Basic argument
"maxmization of profit for shareholders
fails to maximize the wealth for the
society"
It means all stakeholders must be
considered.
 Stakeholder theory
Stakeholder managment,corporate social
responsibility is a method to improve
economic performance
It include:
Details
Busines should not only have aim to gain
profit rather it also have concern towards
their stakeholders and walfare of society
 Stakeholder theory
Information need:
measuring scale for all the stakeholders
must be same e.g. survey for customer
satisfaction,customer loyality,employee
and customer retention
Research findings:
well governed companies are those where
the directors are outsiders,no management
tie and have strict and fair audit of all
operational actitvities of the organization
Governance and stakeholders
organization must go for the element of
corporate social responsibility after
fulklfilling the entire responsibilities of
the organization means basisc goals
should be fullfilled previously
compnay pay only certain amount
towards CSR
manage the stakeholders according to
their importance and influential power
towards organziation
Related coporate governance
and CSR
minimize the usage of resources
must use renewable resources
limited use of non renewable resources
CSR for perticular target market becuse
you cant afford itt in all sectors
good governance lead to maximization of
output due to individual effort