Stakeholder
identification
Company
success is influenced largely by the existing relationship it depicts with its stakeholders
(Crane and Ruebottom, 2011). The growth
and diversity of the organization is influenced by this relationship and
partnership, and HSBC is not an exception. Operating in more than 80 countries
and territories around the world, the company success is affiliated with the
relationship it has with its stakeholders. The business operating environment
has two categories; internal and external. It is in these fields that the
stakeholders arise. The internal environment has stakeholders that influence the
daily running and operation of the organization. For HSBC, the most relevant to
mention in this case are the employees. The employees are further categorized
based on their roles to the organization. The range is from positions of power
such as the executive managers and board of directors to the lowly employee
responsible for keeping the organization and its environments tidy.
Irrespective of their position, the employees are a valuable asset to an
organization and influence the daily activities of the firm (Crane and Ruebottom, 2011). They are
responsible for handling customers and ensuring a smooth running of the
business.
Customers
are relevant stakeholders that a business engages on a regular, ongoing basis (Salado and Nilchiani, 2013). The success of
the business is stipulated by the engagement of the customers and the
satisfaction they receive. Therefore, HSBC success can further be attributed to
the quality services they offer their clients. It is seen that customers
dictate the flow of business as their satisfaction levels result into more
business returns as a result of better performance. HSBC strives to offer its
customers a consistent high level of quality service and experience via
utilizing its geographic reach benefits and scaling towards a strong brand.
Simulating market surveys and communicating directly with clients enhances
understanding their needs and formulating services towards these demands.
HSBC
operates in different legal entities; the company engages the government as
stakeholders in its activities. Negotiations are carried out to ensure mutual
benefits for the legal system and the business operation. In the UAE, for
example, the bank is a member of the Dubai Chamber Sustainability network as
well as the Abu Dhabi Sustainability Group (Hsbc.ae,
2014). Through the acquisition of
membership in these platforms, HSBC is responsible for the provision of
guidance, input and sharing the best practices in the business community. The
practices influence the performance of the business that the government adopts
as code of conduct in the business platform.
At
the international level, the performance of an organization is influenced not
only by the legal sector, but also by other organizations. Non-governmental
organizations and non-profit organizations work closely with HSBC in an attempt
of managing and sustaining operational risks (Hsbc.ae,
2014). In addition, the company has carved a niche for itself through
the ability of working with local and regional NGOs in an effort of
implementing community projects that are comprehensive. The result is an
increase in the stakeholders as it incorporates the local and regional
communities that enjoy the services of the company (Hsbc.com.au, 2014). Community representatives and charity
partners work closely with the locals to understand their needs and formulate
investment plans that HSBC undertakes as a partner.
Lastly, suppliers are
also major partakers in the cake of HSBC as they are expected to abide by the
organizational code. The influence is on the running and performance of the
company and since they are expected to respect the rights of the employees,
they are main influencers of the performance of the business (Salado and Nilchiani, 2013). Shareholders and
analysts are also responsible for influencing the performance of the business
as their needs have to be complied with towards the success of the business.
Since the shareholders are the main sources of funding, they have to be
constantly updated on the performance of the business (Hsbc.com.au, 2014). It especially applies to shareholders with
an interest in sustainable and responsible investment.
Reference
List
Crane,
A. and Ruebottom, T. (2011). Stakeholder Theory and Social Identity: Rethinking
Stakeholder Identification. Journal of Business Ethics,
102(S1), pp.77-87.
Hsbc.ae,
(2014). Working with
Stakeholders - HSBC Sustainability in the UAE. [online] Available at: http://www.hsbc.ae/1/2/about-hsbc/sustainability/working-with-our- stakeholders
[Accessed 11 Nov. 2014].
Hsbc.com.au,
(2014). Sustainability | HSBC
Australia. [online] Available at: https://www.hsbc.com.au/1/2/about/sustainability
[Accessed 11 Nov. 2014].
Salado,
A. and Nilchiani, R. (2013). Contextual- and Behavioral-Centric Stakeholder Identification. Procedia Computer Science, 16,
pp.908-917.
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