Corporation has certain responsibilities toward its stakeholder and society at large that are required to be fulfil by them for achieving success in market. Corporate responsibilities includes business practices that are performed with ethical principle, honesty and integrity. This report is about importance of a stakeholders and role played by them within an organisation. This assignment elaborates about the theory of stakeholders as well as their identification and engagement. Further it describes about Debenhams plc's and WH Smith plc's stakeholder engagement along with their comparison. In addition to this it explains about the corporate responsibilities that a company have toward its stakeholders.
Stakeholders are person who are interested in organisational affairs and being affected by its objectives, action and policies. Some example of stakeholders are employees, partners, investors, government, customers, creditor, suppliers and community from which a business take its resources (Anikina and Chekalkina, 2014). Therefore, stakeholder are the key person on which the functionality of a business depends as they affects the decision or actions taken by a company.
Dr. Edward Freeman was a professor at University of Virginia, detailed the Stakeholder Theory of business ethics and organisational management. This theory suggest that the aim of business is to create value for its stakeholders in order to achieve sustainability in market for long period of time. For achieving higher success it is very essential for executives to align the interest of stakeholders in the direction of organisational operations. For conveying this concept, Edward Freeman has improved the Stakeholder theory in year 1984 which is generally known as Strategic Management: A Stakeholder Approach (Bal and et. al., 2013). In this theory Freeman state that a manager is required to consider the need of individuals as a company would be cease to exit without the support of its sta