A corporation is an independent legal entity owned by a group of shareholders. It is legally liable for its actions, not the shareholders who own it. Corporations are better suited for large and established companies as they have more administrative duties and are imposed huge taxes compared to limited liability and sole proprietorships. As it is a different entity from its shareholders, corporations are assigned similar legal rights as humans. A prospect syndicate forms a corporate by filing a charter document with the state business entities department, which is usually the Secretary of State. A business corporation has five core characteristics; limited liability, legal personality, centralized management under a board, transferable shares, and shared ownership among capital contributors. A take holder is any person affected by the actions of a business or organization. This essay will focus on the relationship between stakeholders and corporations, and how this association can be improved.
Stakeholders in a Corporation
According to Barnett et al. (2018), a stakeholder is any group or individual who can affect or is affected by the achievements of organizations objectives. The primary purpose of forming companies is to attract customers or consumers. Without them, a business cannot survive in most cases. For this reason, in almost all company operations, the customers have to come first. The customer can also decide to take their business to a competitor, which means a company has to come up with ways to retain their customers (Kang & Hustvedt, 2014). Employees of an organization are also significant for the smooth running of businesses. They deliver services to customers and antagonizing them could lead to the loss of customer service. Companies have to keep employees demands in check for the smooth running of operations. Shareholders are the owners of a company. They are the contributors of capital in business making their need high value. Shareholders can act as or appoint a board to run an organization, and only step in when things go awry. Suppliers, distributors, and partners are useful in the provision of services and skills the organization might be lacking. It is best to form long-lasting relationships with competent partners. The local community sums up the stakeholders association to an organization. Keeping a healthy relationship with the surrounding people is essential, this includes the national government and regular authorities.
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Improving the Relationship between Customers and the Corporation
Companies doing business have one primary objective, to make a profit. One of the most crucial steps in building consumer relationship is through developing trust. Organizations can build confidence with customers in many different ways. The principal methods to do this are through transparency, attitude, and intention (Kang & Hustvedt, 2014). Integrating these perspectives assures client outreach by word of mouth to other prospect consumers. Understanding a corporation’s attitudes and intentions build on trust and long-term association between company and client.
Customer loyalty and rewards are the next steps in building customer association as well as strategic marketing. To this, a business has to understand each group of customers, as they are unique. Loyalty is a behavioral pattern of relative purchases or service consumption from a select organization. For companies to effect rewarding procedures, marketing analysts check on customer share, which means the amount of customer spending within a typical category set of that organization sale. Customer commitment is the attitudinal component of clients in selecting the company for purchases (Babin et al., 2015). Rewarding customer commitment is gearing a loyalty program around the likes, dislikes, and habits of consumers.
Flexibility to consumer complaints and suggestions is another way to enhance the relationship. A corporate organization cannot attend to every customer’s afflictions or opinions. However, the majority of concerns need timely action. The truism that “it is policy,” in response to customer complaints has become invalid. This is because customers have become conscious enough to look for service elsewhere. Companies have to enhance customer service regularly to avoid terminating customer confidence. With the advancements and developments in social media, it is imperative that companies adapt to emerging trends. Flexibility also entails allowing all stakeholders in corporations to make plans about the working conditions that suit them. A balance between company and customer is possible through flexibility in internalizing change.
Corporations can improve their relationship with consumers by exceeding expectations. Customers expect a lot from what companies’ offers. The best way to stay ahead and maintain clients is to raise the bar of what the company offers. It is best to under promise and over delivers. Exceeding customer expectations entails, for instance, providing services faster and earlier than anticipated. Collecting customer feedback shows caring as the small things count. The companies that succeed often tend to not settle for the mediocre, as such, corporations should add a personal touch to transcend customer commitment. Strategizing for success involves a robust and strategic planning process involving objectives and solutions that support the achievement of set objectives. Getting to know the interests of clients through feedback provides a channel for innovation. They can go an extra mile and provide a channel, for instance, a newsletter or web page where customers can stay up-to-date with new arrivals and additions.
References
Babin B.J., Boles J.S., Griffin M. (2015) “The Moderating Role of Service Environment on the Customer Share- Customer Commitment Relationship” Springer, Charm ISBN 978-3-319-11926-7
Barnett Michael, Henriques Irene, and Husted Bryan (2018) “Governing the Void between Stakeholder Management and Sustainability.” 2018 Forthcoming Available at SSRN: https://ssrn.com/abstract=3135417
Kang Jiyung & Hustvedt Gwendolyn (2014). Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility Journal of Business Ethics 125: 253. https://doi.org/10.1007/s10551-013-1916-7
Meinert Monica (2016). Exceeding Customer Expectations Starts at the Core American Bankers Association. ABA Banking Journal New York Vol. 108 Issue 4 pp. 36-37
