Business Stakeholders – Hovensa Refinery Company Case Study
A stakeholder is any society, social group, organization or person that has an interest in the business. Interests in the company can be employment, legal obligation, moral right, property interests and ownership. The stakeholders can be either external or internal to the company. Fassin, (2008) notes that in the modern society the stakeholder management has become a very vital role of managerial ethics and strategies. Therefore, managers should always put into considering the stakeholders of the business before establishing strategies and making the key decisions for the business. This essay uses the case study on the closure Hovensa Refinery Company to identify the stakeholders of the company. A student Sample: ORDER YOUR PAPER NOW
Hovensa Refinery Company announced its closure due to three-year consecutive years of loss. This caught many of the stakeholders unaware and caused panic ranging from the minor stakeholders to the major ones. Some of the stakeholders addressed in this study are:
Employees: The employees oversee the operations of the business for compensation as a reward. The always hope that the company will continue operating in the foreseeable future. Again, they expect to be guaranteed job security by the company. Similarly, Hovensa Refinery Company employees are much concerned with their employment as their source of income.
Government: government and community at large provide the businesses with the charter to operate and in return pay business taxes. The closure of Hovensa Refinery Company will largely reduce the amount tax paid to the government hence reducing the government revenue.
Labor Department: the labor department is concerned with the rights of the employees. It establishes the labor laws that ensures that the rights of the workers at the workplace and in the employment contract are not violated. In the Hovensa case, the labor is guaranteed to ensure that all employees are paid as per their years of service.
Water and Power Authority: this authority is the fuel customer of Hovensa Refinery. The closure of the Hovensa business will have a great impact on the operations of the Authority. A student Sample: ORDER YOUR PAPER NOW
Environmental Protection Agency: the Agency is the custodian of the protection of the environment, and it has to be concerned with the business activities which might have negative impacts on the environment.
Fassin, Y. (2008). The Stakeholder Model Refined. Ghent: Ghent University.