On Ford and its stakeholders Ford is one of the truly multinational corporations associated with the United States of America. This has been around for at least as long as any of us have been alive. Due to their seniority and the scale of their operations, a large number of people are affected by the decisions they make and the actions they take. Over the years, like any large company, Ford has had issues with corporate social responsibility towards its stakeholders. However, lately the company has become very active in this regard and the markets are responding positively to the changes made by Ford. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Before any analysis, it is important to clarify the four types of stakeholders. There are supportive stakeholders, also called Type 1 stakeholders, who have a high potential to cooperate with an organization, but a low potential to threaten an organization. There are marginal stakeholders, also called type two stakeholders, who have low potential to cooperate with an organization, as well as low potential to threaten an organization. There are non-supportive stakeholders, who have low cooperation potential but high threat potential. Finally, there are mixed-benefit stakeholders, who have high potential for both cooperation and threat. Stakeholders are also organized according to four key attributes: legitimacy, power, urgency and proximity. Legitimacy refers to whether the stakeholder is perceived by third parties to have a legitimate and appropriate right to participation. Power is the ability of a stakeholder to influence the course of a company's operations, often linked to its legitimacy. Urgency relates to how quickly the company in which the stakeholder has an interest feels the need to act in accordance with that stakeholder's wishes. And finally, proximity depends on the exact distance between them in a geographic and spatial sense. In any company, employees are among the most important stakeholders. Current CEO Alan Mulally wrote in a policy letter a basic code to adhere to in dealing with all employees. Written earlier this year, the letter makes it clear that employees must be treated with respect and paid fairly and competitively (Mulally 2). This means that when it comes to employment, Ford is probably a great place to work. However, while employees may be treated with respect while on the job, many might argue that the constant layoffs that are the result of Ford's clumsy growth in the industry in recent decades are a form of worker abuse. During the last two recessions, Ford laid off thousands of workers (Webb) (24/7 Wall St.). In fact, according to AOL Jobs, Ford ranks sixth in largest layoffs of all time, with approximately 35,000 jobs as of January 2002 (24/7 Wall St.). While the job may have been great while it lasted, for these people Ford wasn't exactly a reliable employer that offered them stable employment. A strong argument could be made that by being irresponsible with their growth and contraction, these people ended up with good jobs in front of them, which is an interesting take on worker abuse. Ford employees are stakeholdersfour because they are very important to the company, but can also pose a high potential threat, especially to union workers. They have very high legitimacy because they work within the organization, and their urgency is relatively such that they are largely, if not entirely, responsible for the production of Ford's products, vehicles and the like. Additionally, although employees in any organization already have some power, being in a union gives them even greater power. This means that Ford employees are arguably the most important stakeholders. The owners of Ford, namely the shareholders, are generally considered to be very important stakeholders. They have a lot of legitimacy and, in some cases, can have a lot of power – they can band together to vote against the company's current administration, for example – but they have very little urgency if they don't hold not a significant stake in the company. Someone who owns 400 shares of Ford Motor Company stock will not receive much attention from the company or the media regarding their opinion of Ford's operations. All the common shareholder can do is buy and sell, which affects the stock price, even if only minimally. good or bad for the business for various reasons. Ergo, shareholders are most likely Type 1 stakeholders, so Ford should do everything in its power to involve them in its operations. This may include voting on various issues or hosting events for shareholders to make them feel more part of the company they have invested in. As with any business, some of Ford's most important stakeholders are its customers. Cars are resource-intensive to produce and require a lot of research and development on a company's part, making them a significant investment for the company producing them. Additionally, a vehicle is often one of the most expensive items in a household, so the decision to purchase a vehicle is often the result of a lot of time and effort. If Ford were to continue to ignore the demands of its consumers, their dollars would speak volumes and would be transferred to their competitors like General Motors, Honda, etc. Although customer cooperation is important, a single customer presents very little real threat to an organization other than the threat of spending their money elsewhere. As such, they are type 1 supportive actors. The best strategy would be for Ford to involve the customer in the production of new products, for example by organizing events at Ford dealerships where owners can give feedback on new products. vehicles. Through this strategy, Ford would not only gain valuable information from its customers, but also gain a more loyal customer base who feels actively engaged in the company's affairs. It's interesting to see how the dynamics of different stakeholders change as you move between them. them. For example, although customers are often the least legitimate and closest stakeholders mentioned throughout this overview, they are probably the most urgent. Ford, in most cases, will meet the needs of customers before those of others, because their source of income, ultimately, is what matters most. It is questionable whether they have power, because they have power within groups, but in general an individual customer of a company like Ford cannot have an extraordinary effect on the company. 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