ABSTRACT

The first two chapters focused on the external environmental stakeholders. This chapter focuses on the internal environmental stakeholders: employees, stockholder/owners, and managers. It begins with a section describing employer–employee relations, followed by a section discussing unionized employees, with the third section describing the rights of all employees. In the fourth section, you will learn about how and why professional managers run the company for the stockholders. The fifth section presents the role of the board of directors and how it governs the corporation. The board is responsible for guarding the stockholders’ interests while setting policies that affect employees and managers. The last section discusses the strategies presented in Chapter 1, Figure 1.4, describing which strategies are generally used to deal with employee and stockholder issues. Putting it all together, owners, employees/managers, and stockholders are strategic stakeholders. Business can’t exist without owners and workers. Management’s role is to formulate and implement strategies to achieve the firm’s mission and objectives, and they do so through the corporate governance structure.