Stakeholder Engagement & Sustainability in Business Assignment Sample

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Introduction : Summarizing Stakeholder Engagement and Sustainable Practices for Business Success

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Identify the internal and external stakeholders     

Internal stakeholders

Individual managers, creditors as well as customers, and local communities are considered internal stakeholders of LOLC Holding Plc. Internal stakeholders are the people who are directly related to the organization and the company is directly affected by them. Individual companies' succession plans are necessary and can be related to the individual internal stakeholders. Internal stakeholder analysis is useful to describe those people who are involved with operations activity. In these prospective employees, owners, managers, and directors are internal stakeholders of the organization. This organization is registered with the Colombo Stock Exchange and was founded in 1980. It is a non-financial banking organization, which is operating its business through investment and financial support to new organizations. Internal stakeholders of this organization are directors, who make decisions about the future goals of the organization. Along with that, managers of this organization have decided about investing plans for future growth. This organization provides financial solutions to clients where managers play an important role in deciding the best service for each client. Another important stakeholder is this organization's employees, who play a role in improving the organization's service to clients. 

External stakeholders

Individual investors, shareholders, and government agencies are considered external stakeholders, and sometimes a business succession plan depends on that. The principles of external stakeholders are indirectly related to the company, which is necessary for the wider business performance of LOLC Holding Plc. External stakeholders of an organization are important in identifying different factors. Based on the analysis of this organization, internal stakeholders of this organization are considered investors who are investing their funds in this organization. Investors provided allocated funds to be used as resources for this organization (Tumwebaze et al., 2021). Dividend payout to investors is the basic responsibility of this organization to appreciate investment for further investment. Other external stakeholders are shareholders, who are financing organizations for financial resources. This organization has a responsibility to those shareholders to produce financial reports of this organization to clarify the financial position of this organization. Furthermore, shareholder participation is dependent on the financial transparency of the organization's financial reports. This organization has delivered quarterly financial reports to the public domain to maintain financial transparency. Government agencies are also considered extra stakeholders because government agency rules need to be followed by this organization. Along with that, government rules and responsibility to the community are being considered by this organization. 

1.1 Power and interest of both stakeholders

Power and interest of internal stakeholders

Internal stakeholders are the people who are directly related to the company and business outcomes are perfectly maintained by them. Regular engagement activities, as well as activity consultant systems, are maintained by the individual internal stakeholders.

Power and interest of external stakeholders

To control strategic resources as well as involvement strategy, they are directly maintained by the external stakeholders. It is a non-financial banking organization that operates its business through investment and financial support for new organizations. Sometimes positive financial conditions are the main reason for actively maintaining project management goals. High-interest stakeholders are depending on the performance level of the individual product owner. 

1.2 Communicate to individual stakeholders about the sustainability issues     

Managers 

Management skills are necessary which efficiently increase unique selling points by differently communicating with the individual people. Sustainable design, as well as continuous construction practice, is necessary which measures emissions throughout the project. Sustainability of managers in this organization has become possible by internal communication with others. Managers and employees communicate with each other in each decision making activity where improvisation of communication helps to gain more retention of managers in this organization.

Creditors

Individual creditors are played an important role that can also fulfill the legal obligations of LOLC Holding Plc. The company is facing no more debt after the liquidation, which is involved by the individual credits. Sometimes creditors are taken legal actions, which are necessary for business security. Sustainability of creditors is dependent on payment methods to creditors, while using less time period for payment to creditors would be an issue for this organization. Along with that organization's sustainable amount of creditors has indirectly influenced the financial operation of an organization. Using of long period of time for paying credits payment has impact of relation with creditors.    

Customers

A remarkable customer experience is necessary for the business, which responsibly increases individual companies' sales volume. In order to, maintain organizational sustainability government of Sri Lanka is following legal obligations and that can improve customers' experience. 

Suppliers

In order to, reduce cost level of the business and minimize price velocity is necessary and that can be improved the supply chain process. Continuously improving operational efficiency is involved by the individual stakeholders who are necessary to increase the sales volume of the business (Muller et al. 2019). Suppliers are important in the business and that can improve individual customers' experience level.   

Environmental relevance 

Environment relevance to this organization has been decided by social factors, which is being used to analysis threats and opportunities for business expansion. Socially developed countries have potential growth of business whereas social factors are important to this organization. Financial solutions have been provided by this organization where education and culture are important to this organization (de Villiers and Molinari, 2021). The communicative environment in an organization helps to gain more productivity in the workplace. Additionally, an internal communication environment helps to understand employees ' motives and actions about organization benefits. Considering all factors, social factors influence LOLC holding.

Social relevance 

Social relevance to this organization has been decided by educational and cultural factors that influence other employees. Social factors like awareness programs and other cultural activities influence this organization for better performance. By performing social interaction with the community also builds a better brand image to the community. Although the use of different cultural activities promote brand image to the community that increases the brand value of this organization. Brand value is the factor that influences market capital of any organization, whereas social performance of this organization has been conducting for betterment of this organization's brand image.  

Economic relevance 

Economical factors are being considered to define financial performance of an organization. According to economic factors, relevance analysis is important to identify the future progress of this organization. GDP and per capita income has to be better for financial growth of any organization (Wilson and Bryant, 2021). Overall economic growth of the community has improvised the organization's financial condition by revenue earrings. Another fact about economical factors about this organization has been influenced by the community economy. Other factors about the economy influence organization performance by financial changes.

2. Sustainable feedback to the stakeholders

Maintaining sustainable framework

To, describe a sustainability framework improving the performance level of the business is necessary and that can be involved by the sustainable feedback to stakeholders. Organizational sustainability is important which is necessary to increase the operational efficiency level of the business. Stakeholder sustainability is important and that can efficiently maintain local communities by using a systematic strategy (Nasution et al. 2021). A sustainable development plan is necessary which maintain company strategy is. Sometimes stakeholders' engagement process plays a more comprehensive role during the decision-making process. Sustainability is necessary for organizational long-term growth. In order to, reduce business costs is involved by the innovative strategy and the minimum amount of revenue must be increased by following a sustainable framework. A more innovative strategy is improving the reputation of LOLC Holding Plc directly related to the stakeholders' management system.   

Improves communication lines through accountability

Communicational strategy is necessary for the business organization and can effectively maintain streamlined communication within the business. Accountability does affect organizational communication and that can only be maintained by the individual communicator. Accountability is also important and that can be improved by the internal practice. Social impact and organizational management are continuously improved by the effective communication line (Kaplan?Hallam and Bennett, 2018). Established organizational communication is necessary for the business and can be maintained by a sustainable framework. To, explain the strengths and weaknesses of the individual business organization is necessary that can set realistic goals to maintain equilibrium. Providing considerable feedback process is mandatory during the same time which is always necessary to effectively maintain a communication strategy. The sustainable framework is the process that minimizes challenging positions and effectively communicates verbal and nonverbal communication.  

3. Communicate with stakeholders

Stakeholders need to focus on some responsibility which is useful to identify sustainability issues. Efficient communication strategy and stakeholder communication are necessary to maintain a proper business line. Environmental, social as well as economical factors are effectively maintained which is necessary for individual business organizations. Sometimes these factors are necessary to identify the strengths and weaknesses of the business organization. 

4. Identify the problems and plan for minimizing issues

Insufficient marketing strategy 

Maintaining productivity level, role specifications, as well as poor customer satisfaction, are the biggest difficulties that are ever faced by the organization. Maintaining teamwork assessment is necessary and can reduce organizational difficulties (Salim et al. 2018). Identifying clear and strategic direction is another difficulty that is faced by the individual business organization and that can be maintained by an effective communication process. Multiple personalities as well as key competencies are necessary and can be effectively maintained by the individual business organization. Insufficient marketing strategies have influenced the factors of organizational performance. Financial solutions provided to clients are important to produce financial benefits for clients, however this organization has failed to improve revenue generation.  

Effective communicational strategy is important to the individual business organization and is necessary to minimize numerous difficulties. Other major issues are faced by the individual business organization such as lack of strategic direction, market transformations, as well as maintaining a balance between quality levels, which is necessary for the business growth (Ikram et al. 2019). Sometimes identifying poor organizational skills is necessary and that can prioritize business revenue. To, increasing business profit is the main reason for employee satisfaction, which involves positive business growth.

Poor skills and lack of knowledge

Lack of skill development is another major difficulty that is ever faced by the individual business organization. Lack of time and financial resources is the biggest challenge faced by individual business organizations. An ineffective web presence as well as difficulty in maintaining a balance between quality and growth reduces business sales. Sometimes environmental management system is affected by the specific business organization and that can minimize organizational opportunities (Dey et al. 2018). Order to, identify the sustainable issues are necessary and can minimize major business issues. Sometimes these challenges are considered as the biggest obstacles, which are necessary for individual business organizations. Lack of knowledge, as well as poor communication skills, are common difficulties that are ever faced by individual business organizations. Established organizational communication is necessary for the business and can be maintained by a sustainable framework.   

Plans minimize issues:  Evaluation of marketing strategies for future customer acquisition would be more effective for marketing strategies. Digital marketing and advertising would be useful to enhance brand image among clients and potential clients. Using marketing strategies like fintech solutions would be more effective in gaining more clients in future. Online business services should be established by this organization for faster performance to clients. Through implementation, an online marketing strategic plan helps to gain more effective influence toward customers. The largest range of clients would be manageable by online service where this organization also influences the younger generation to use LOLC holding service. Enhance the work quality and productivity of an organization would be possible, through continuous training programs for employees would be useful for higher productivity. Furthermore, market analysis by employees would be more effective to identify potential clients and what expectations they have regarding LOLC holding service. Online financial solutions to customers would be more effective and faster for clients which would improve organization activity. Through digital service, clients would be proactive to use LOLC holding service any time. 

Reference list   

Batle, J., Orfila-Sintes, F. and Moon, C.J., 2018. Environmental management best practices: Towards social innovation. International Journal of Hospitality Management, 69, pp.14-20.

de Villiers, C. and Molinari, M., 2021. How to communicate and use accounting to ensure buy-in from stakeholders: lessons for organizations from governments' COVID-19 strategies. Accounting, Auditing & Accountability Journal, 35(1), pp.20-34.

Dey, P.K., Petridis, N.E., Petridis, K., Malesios, C., Nixon, J.D. and Ghosh, S.K., 2018. Environmental management and corporate social responsibility practices of small and medium-sized enterprises. Journal of cleaner production, 195, pp.687-702.

Ikram, M., Zhou, P., Shah, S.A.A. and Liu, G.Q., 2019. Do environmental management systems help improve corporate sustainable development? Evidence from manufacturing companies in Pakistan. Journal of Cleaner Production, 226, pp.628-641.

Kaplan?Hallam, M. and Bennett, N.J., 2018. Adaptive social impact management for conservation and environmental management. Conservation Biology, 32(2), pp.304-314.

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Muller, S., Hemming, S. and Rigney, D., 2019. Indigenous sovereignties: relational ontologies and environmental management. Geographical Research, 57(4), pp.399-410.

Nasution, A.P., Wibowo, E.A., Ramdani, R. and Rofiqah, T., 2021. Urgensity of Environmental Management System Implementation on Oil Palm Plantation Management Policies in North Sumatera. Journal of Social Transformation and Regional Development, 3(1), pp.1-6.

Salim, H.K., Padfield, R., Hansen, S.B., Mohamad, S.E., Yuzir, A., Syayuti, K., Tham, M.H. and Papargyropoulou, E., 2018. Global trends in the environmental management system and ISO14001 research. Journal of cleaner production, 170, pp.645-653.

Tumwebaze, I.K., Rose, J.B., Hofstra, N., Verbyla, M.E., Okaali, D.A., Katsivelis, P. and Murphy, H.M., 2021. Bridging Science and Practice-Importance of Stakeholders in the Development of Decision Support: Lessons Learned. Sustainability, 13(10), p.5744.

Wilson, G.A. and Bryant, R.L., 2021. Environmental management: new directions for the twenty-first century. Routledge.

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