Sample Essay: Stakeholders for International Business Management

Are you going to be an outstanding businessman or business woman? Then here’s a sample business essay for you.

The system is a category, envisaging as an existence of two factors: the elements of this system and the cooperation among them. We must present the enterprise, company as a system, and than admit, that hence the elements of it form the list of stakeholders, and the common efforts, the company’s activity is achieved by their cooperation, and the activity of enterprise is defined by mission statement. So, these documents play pre-eminent role in the process of company’s emerging, in its functioning, and particularly effective functioning, it has an impact on the division of profit, given by company’s activity.

business paperIn the contemporary American concerned literature (“American Express”) we can find such an explanation of the phenomena of stakeholders and mission statement. A mission statement is needed for the communication of the essence of your organisation to your stakeholders and to the public. Often, however, organisations are intended to express more about who they are, what they are doing, and why they are doing it. Neither approach is necessarily the “right” one for your organization. What is important about your mission statement is that one guiding set of ideas is articulated, understood and supported by the organization’s stakeholders, board, staff, volunteers, donors, clients, and collaborators. The pre-eminent importance of the mission statement means that failure to clearly state and communicate your organization’s mission can have heavy consequences. At last, the importance of mission statements is summarized quite eloquently by Lewis Carroll through the words of the Cheshire Cat in Alice in Wonderland, “If you don’t know where you’re going, it doesn’t matter which way you go.” (“American express”).

The mission statements can include the aims and the values of the enterprise. The aims describe the main direction of its activity, and the values describe the way of achieving the goals, for one hand, and the principles of company’s work, for another.

The issue of stakeholders is principal in the respect, that top stakeholders groups usually define the direction of the enterprise’s activity, and they are the indispensable elements for the creating of the company. The stakeholders give their capital to some people, who organises the production process, but the real owners of the enterprise are the stakeholders. The importance of such mean of company’s organisation rises, because in the contemporary world a single person is unable to create a strong, famous enterprise-giant, though the human progress, the cooperation of all the world population and the forming of world community requires such a companies (Frank G. Zarb).

The stakeholders may be divided on the single persons and some organisations; usually their activity is closely concerned to the company, which stakes they take. In the era, when economy and politics are so tied together, the economic actors have their roles in the politics, and vice versa. That’s why among the stakeholders we can see the political parties (it gives to the company specific status – when this party possess power, the company obtain some privileges; it’s, in fact, the source of the economic and political profit of the party, and it’s a source of political profit for the company). We can also see the unions, including professional unions, press and military organisations, or even the government. But we must underline, that the main initiative to pursue entering in the list of stakeholders is the economic – the desire to take part in the division of company’s profit. (“American express”).

We must also study the issue about the participation, the presence in the list of stakeholders, of people, who work or study in this company. It is the usually practice, that all of them have their stakes in the company’s capital. The major reason for it is the growth of interest in the work – the person will work more effectively, if he knows, that he will take part in the division of profits. Another reason is in the beginning of the company’s activity. If the stakeholders haven’t enough money for registration and foundation of the company, they may use the finances of their future labourers. That’s why all the people, working on this enterprise, from the lowest labourer to the director, are the stakeholders of it. It forms a paradox – a person is an owner and the labourer simultaneously, but in this case the person clearly understands, that he works for his own benefit. This is the main postulate of the theory and ideology of liberalism, which spread on almost all the countries of the world (“American express”).

So, we must study the example. Let us take some company and define the list of its stakeholders (in the extent, which doesn’t contradict to the principal of commercial secret).

For the first plan, these are the people, who lead the Council of the stake-holders, who possess relatively big part of actions, and who can define the direction of company’s activity. Among them are the representatives of another big companies, established earlier, or just rich people. The second for in the importance are the workers of the company, because their number is usually the biggest. The company can propose to the workers to buy the actions on the relatively profitable terms, or it can introduce a compulsory buying of the stakes. The third category contains from the organisations, which have not only the economic interests: political parties, unions, lobbyists, the press, the state (the government), civil non-profitable organisations and other. For one hand, a company is the source of economic development (the dividends), for another, it is an area for spreading their ideology, and also it is the way to keep this company in control. The fourth category is formed from the people and organisations, who possess a little bin in the company’s capital, and who doesn’t work in this enterprise. They can only use the dividends, but almost can’t define and direct the company’s work.

We must admit, that the first category (the top stakeholder groups) possesses the biggest authority to define principles of the mission statement. In the case, when the leaders are unable to compromise, they can turn to the common meeting of the stakeholders, where one of the key roles will be in the hands of workers. So, both these categories are influent. But most companies don’t include the list of the stakeholders in the mission statement, because it isn’t compulsory – mission statements describe the “aims and values” (from the mission statement of “Energywatch”). Though the knowing of main owners can give the more full information about the essence of the company. The top stakeholders don’t take part in the daily activity of the enterprise. If some of them possess the posts of directors, we must distinguish the concept “director” and “owner” – hence, this person doesn’t take part in the usually company’s activity as a stakeholder, but as a director (worker).

So, the stakeholders and the mission statements are the major features of the effective modern company. The former concept provides its safety, gives an elementary impetus to its developing, controls and manages the whole enterprise, and the latter concept describes the essence of the company, its main aims and principles of functioning.


  1. School of Business. Statement of Mission” – by Frank G. Zarb, 2000.
  2. “What’s in a mission statement?” – by the “American express”.
  3. “The need for a mission statement” – by the “American express”.
  4. The mission statement of the company “Energywatch”.
  5. The list of stakeholders of the “Chemical Engineering”.
  6. “What should be in a mission statement” – by the “American express”.

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