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Words: | Submitted: Mon Jun 19 2006
... as they want short-term gains. If shareholders leave the business, it's independence is at risk as without them the business may not be able to survive. Also if a company puts shareholders first, they are to gain as shareholders choose the directors. Therefore if shareholders are gaining high dividends they are more likely to elect the director they feel will continue this progress for the business. On the other hand a company may take Virgin's approach and put employees first. Employees are internal/connected stakeholders of the business; this is an advantage within itself. If employees are put first there will be many gains, which will improve the performance of the business as they play a vital role in the everyday running of it. This is true for Virgin as it is still a successful business pleasing shareholders. Employees are the ones, which run the business day to day; therefore if they have the ...
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