Philips Stakeholders & Corporate Social Responsibility

Topics: Federal government of the United States, Stock, Shareholder Pages: 6 (1776 words) Published: February 21, 2011
Philips Electronics
“Stakeholders (or interest groups) are tangible, visible and approachable groups or institutions which have a direct influence on the functioning of an organisation.” INTERNAL STAKEHOLDERS

Philips employees work in different divisions: Healthcare, Lighting, Consumer Lifestyle and Innovation & Emerging Businesses. Within these divisions, you can have a general leadership position, occupy a functional leadership position, you can be specialist, etc. Philips says it’s giving its employees freedom to develop and improve their skills and talents, it is challenging them to grow. Its employees therefore, are given an high responsibility, but they can also contribute their new ideas. Because when you work at Philips, “you need to be willing to take ownership of your projects and feel accountable for delivering superior results.”

Philips says it’s trying to attract diverse people in a workplace environment wherein “people are valued for who they are (not what they are)”. This is necessary, because Philips also has international teams, since it has become a global leader in electronics. With this statement for its employees, Philips says it’s able to make better decisions, and it’s getting closer to its customers.

But of course, these employees have a certain influence on the customers who buy at Philips. They therefore have to behave according to certain rules (Philips ‘General Business Principles’), otherwise employees could be able to destroy the image of the company. They have to stay focused and they have to try to improve quality at all times, and, most important: they have to be and stay committed to Philips values. But this also works the other way around; when Philips shop managers do their best with helping someone who enters the store, they can recruit new customers. And not only shop managers help Philips getting better sales, also the people who develop new products or techniques improve its sales. They also participate in Philips sustainable projects, which helps keeping the image of the company high (see ‘Corporate Social Responsibility’) Shareholders

Shareholders have bought Philips’ stock, so they own a part of the company. Some people have bought common stock, some have bought preferred stock. People with common stock obtained rights to vote in Philips annual General Meeting of Shareholders (preferred stock holders cannot vote, they have priority in the payment of dividends) . Before the annual meeting, shareholders can do a proposal for putting an item on the agenda, they have to send these requests to Philips and they will accept or deny this proposal. In this meeting shareholders can ask questions and are sometimes entitled to vote. The interest common stock holders have in Philips is that they can request and vote on certain matters. The interest shareholders with preferred stock have in Philips, is the fact that they get paid first in the event of the company’s liquidation or bankruptcy, and also the assets will be divided amongst them. These shareholders also contribute something. Because, without their money, Philips isn’t able to invest in certain projects, or to develop new products and techniques. Suppliers

Suppliers who work with Philips contribute to the quick transport and flexible supply of product materials. They make it possible for Philips to run everything as efficient as they want it to be. But these suppliers not only contribute something, they also have an interest in this whole process of working together, as Philips puts it: “We are generating value through shared goals and leveraging our mutual strengths and competencies.” And: “Our partners can be meaningfully involved in our innovation and product creation process.” These strategic alliances are essential for Philips, because, through its suppliers it was able to offer some new products to its customers, like: Senseo®, PerfectDraft and ActiveCrystals (Swarovski). Competitors

Competitors also...
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