Customer Stakeholders

After reading Stakeholder Theory of the Modern Corporation, I believe that the customers are the most important stakeholder in a modern corporation. The article states that the customer is the “lifeblood” of any corporation. If a corporation doesn’t place emphasis on the customers then their firm will fail. The corporation has to fulfill the wants and needs of their customer to be successful. If the customers are not happy then they will not buy the product or service that the corporation offers. Employees and management will be fired, suppliers won’t be able to get paid and the local community will not have a good perception of the company if the customers aren’t happy.

I agree with Peters and Walterman’s study that “excellent companies” have great reputations in the community. Companies like Walmart have good relationships with their customers because they satisfy their needs. People that shop at Walmart are loyal customers because the employees at Walmart are friendly and the customer’s needs are fulfilled. If Walmart didn’t meet the needs of the customer then the other stakeholder’s interests would not matter.

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8 Responses to Customer Stakeholders

  1. Alyssa Haglund says:

    Walmart definitely has loyal customers that repeatedly come back for the low prices and great customer service, but many communities are still hesitant to accept such large stores into their communities. There are strong concerns that with the introduction of a Walmart into a community, it will take away the life of other local businesses. Therefore, Walmart does meet the needs of the stakeholders, employees, and customers, but perhaps lacks the final player of community.

  2. aml028 says:

    I agree and disagree with you. I was thinking about the Walmart in Lewisburg when I wrote this blog. I feel like the local community including Bucknell students think very highly of Walmart. In a area that doesn’t have that many shops that interest me, Walmart provides everything I need for a very affordable price. Also, whenever I have been to Walmart there has been some charity or organization outside trying to get some money. If people didn’t think highly of this Walmart then the local charity wouldn’t associate themselves with them. I agree that Walmart takes business away from small mom and pop businesses but I think the Walmart in Lewisburg is highly thought of by the community.

  3. I agree with what you wrote in your initail blog, Alex. Without consumers, a company will inevitably fail. This is visible even from the two cases we have read so far for class: the reason that Enron and AIG failed in the end is because the public lost trust in them. Their credit ratings fell and reputations worsened, creating the slippery slope that lead to their downfall as a company.

  4. Different comment: I also appreciate your clarification about Walmart. Here in Lewisburg, its role in the community is extremely different than any other place I have visited. Interesting point – I think we should all keep this in mind when using Walmart as an example (which I did already too!).

  5. nrz002 says:

    Without customers there is no corporation. I agree that they are the “lifeblood” of any corporation. I agree with you that Walmart has loyal customers. How much of an impact does store location and low prices have on producing loyal customers? I think it has a huge impact because I’m not agreeing with the idea that Walmart employees are customer friendly. I don’t think I have even ever been “greeted by the greeter” here in Lewisburg.

  6. cornerback5 says:

    Hmmmm. Interesting. I believe that every company’s most important focus is the customer because that is how they make their money. However, who will undergo daily operations if you do not have any employees? Who will run and maintain that operations are going according to plan if you have no management team or CEO? My point is that all stakeholders are an integral part of a company, consequently you can not have a company with the absence of either one. Therefore, all stakeholders are equally important.

    • Cander says:

      I think it would be tough to make an argument that all stakeholders are equally important. Personally, I believe that a company’s first responsibility is to their owners/shareholders and then secondly, their customers. However, it is important to also weigh the views of the general public, government authorities, and special interest groups. I think to consider those last 3 equal to shareholders and customers would be ideal in a perfect setting, but not what is truly practiced in the real world.

  7. katiebaum13 says:

    I agree with this post. I too believe that a company’s stakeholders are one of the most important things to their success. Sometimes major companies lose sight of this idea when trying to expand and grow as a company. They lose sight of trying to keep their customers happy and focus too much on doing things to help the company expand rather than keeping their customers happy. It is important that they always keep their customers in mind because they are the one that give them business.

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