I feel that Freeman did a great job of breaking down the key roles and the importance of each stakeholder in his article “Stakeholder Theory of the Modern Corporation”. Owners have so much of a stake in the corporation that often their financial livelihoods are on the line. Employees have specialized skills in which they are performing to receive monetary benefits in return to support themselves and their dependants. Both owners and employees are to constantly remain faithful to the corporation by always doing what is in the best interest of the corporation. The local community also plays an important role in that the firm is to act as a good citizen to the community and not break its trust. Customers obviously have a great importance to the corporation because they are the ones who make the firm generate revenue by buying the company’s products or services to keep the company in business. I feel management holds the key role in a corporation in that it must keep the relationships among stakeholders in balance.
The last stakeholder that I haven’t mentioned yet is suppliers. When I first saw that suppliers were a stakeholder, I thought that their importance would have to be very minute. However, after reading the article, I realized that they have just as much importance as customers. The supplier-company relationship is valued in that the supplier will be there for when the company may be in trouble. In the article, there was the example of Chrysler, who was loyal to their supplier, and was close to a complete fall out. Their supplier gave them price cuts and accepted late payments to help them get back on their feet. It makes sense for the suppliers and companies to have such a good relationship because if one falls then the other suffers as well. And this is why each stakeholder plays a key role in determining their company’s future.