Discuss How A Company Caters To The Interests Of Stakeholders And What May Happen If Stakeholder Expectations Are Not Met

Assignment Question:

The text defines stakeholders as: “Individuals and organizations who are actively involved in the organization or whose interests may be positively or negatively affected as a result of what the organization does.” Every organization has stakeholders. Choose one of the companies below and identify three key stakeholders. Then discuss how the company caters for their interests and what may happen if their expectations are not met.

    A water utility company

    A multinational food company

    A local airport


Assignment Answer:

  Out of the three companies I choose the local airport at the one I wish to talk about.

  Three key stakeholders of a local airport are:

  Firstly, commuters who need to travel in and out of the city where the airport is.

  Secondly, all those who have jobs at the local airport, from Pilots to Janitors.

  The Third stakeholder is the Government.

  The company caters to the interests of commuters by providing a place where commuters can book flights, wait for flights, and get on flights.

  Without that local airport they'll be no commuting to the city or out of the city by plane.

  The company caters to the needs of all those who work inside the airport by providing a place for them to work.

  Which in turn provides cashflow for those who work in the airport which is necessary to live and take care of their needs as well as provide for their families.

  The company caters to the government. Without the local airport the influx of tourists and visitors into the city is greatly reduced. That is bad for the economy of the city because of all the business that tourists patronize.

  Not to mention that the presence of a local airport means that those who produce local goods can easily export their goods faster to other cities in the country or around the world.

  All this economic activity that will blossom as a result of the presence of a local airport means create more revenue for the city and for the government.


  If the company's expectations are not met it will affect all stakeholders negatively.

  It could result in commuters being stranded at the airport.

  It could result in employees being laid off.

  It could mean a great financial loss to the government which in turn would have very unfortunate effects on certain government employees



Carpenter, M., Bauer, T., & Erdogan, B. (2010). Management Principles 1.1. Chapter 4