Running Head: Activity 2 Assignment Activity 2 Assignment Akshay Devlekar University of the Cumberlands Activity 2 Assignment Week 2 Discussion Lincoln Electric considers customers and employees to be more important stakeholders than shareholders. Is it appropriate for management to define some stakeholders as more important than others? Should all stakeholders be considered equal? Discuss In my opinion it is okay if Lincoln Electric gives more importance to the customers and the employees than the shareholders. Customers are like the drivers of the business and employees are like the fuel which drives the engine, in this case to be able to work on the customer needs or requirements. Efficient working of employees are important in order for business to grow. The basic idea for people to get into business is to make money and traditionally most of the publicly owned companies make sure of effectively using the shareholders money. Now a days, organizations can be seen focusing on the other groups of stakeholders because of the corporate social responsibility and citizenship where the organization has to make sure that they are socially responsible, and accountable for their acts while providing high standards to the society and other stakeholders while maintaining profitability for the stakeholders. This brings me to the main reasoning why it is ok to give more importance to the customers and the employees which is organizational health. As we know, stakeholders are groups while can impact or get impacted by the organization action 2 Activity 2 Assignment and decisions, employees and customers are the key stakeholders because of the reasons specified previously about how they contribute to the organizational growth. Organizational health is important in order for the effective running of business, to adapt to the change, grow. If employees and customers are not given equal importance as that of the shareholders, there’s a chance that it might hamper the productivity of the employees which will affect their ability to deliver the services on time ultimately losing the customers. Thus, it may cause a business to come to an end. Apart from organizational health, in case all the stakeholders are given equal importance, if one group of stakeholders is dissatisfied, it may cause other satisfied stakeholders. Along with that it’s a fact that not all the stakeholders have equal impact on the organization. 3 Activity 2 Assignment References: Kokemuller, N. (2016, October 26). Are Customers and Employees More Important Than Shareholders? Retrieved from https://smallbusiness.chron.com/customersemployees-important-shareholders-19405.html Futrell, C., Agnihotri, R., & Krush, M. (2019). ABC's of Relationship Selling through Service. McGraw-Hill. Reference: Futrell, C., Agnihotri, R., & Krush, M. (2019). ABC's of Relationship Selling through Service. McGraw-Hill. 4
