That making steps towards stakeholders’ safety is a matter of paramount importance is underscored by the fact that it is the stakeholders who carry and propound the interests of the policies, mission, vision and project. This is because; it is the stakeholder who directly affects the operations and transactions of a business as a whole, and the party also in turn affected directly by the same actions by the business. This is because; a stakeholder is a person, an organisation or even a group that may have a direct and/ or indirect stake in an organisation since it affects organisational actions and objectives, mission, vision and policies; and these in turn can affect the stakeholders. As such, the main stakeholders in an organization may include: directors, clients, creditors, employees, suppliers, the government (together with its agencies), unions and even the community that supplies the organisation with resources necessary for all manner of operations by the business.
Against this backdrop, it becomes self evident that the stakeholders are inextricably integral to the business organisation, but also that making critical steps ought to be made to ensure the safety of the stakeholder. Thus, some of the measures that ought to be made to ensure the safety of the stakeholder are discussed forthwith.
To ensure employee safety, there is a great need for the business organisation to strengthen its human resource management (HRM) or practices as a way of ensuring the reality of stakeholder security. The democratization of the HRM department and practices is to be the preamble of proper HRM management. This is to ensure that the business organisation is guided by meritocracy as opposed to cronyism and nepotism when carrying out employee recruitment. This is to the effect that: vacant portfolios are advertised publicly; and that successful applicants are interviewed, absorbed and given remunerations that are commensurate with their qualifications. The same case is to remain in effect when promotions are to be exacted. This may be carried out in respect to legislative pieces such as the Equal Employment Opportunity Act of 1972 which states that every person is legible for employment, irrespective of race, tribe, religion, color or creed (Loscocco, et al., 2001).
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Alternatively, a business organisation may move in to quell stakeholders’ (employees’) fears by providing the same with job security. This is totally in concomitance with the 1964 Civil Rights Act which strengthened job security by making a legal proscription on the firing of employees on given reasons. It is these provisions provided in the 1964 Civil Rights Act which were further amended and protected in the aforementioned 1972 Equal Employment Opportunity Act (Burchell and Ladipo, 2002).
Similarly, as far as the safety of the personnel is concerned, the actualization of performance appraisal should be carried out regularly and transparently. This may entail analyzing performance by the personnel as a way of trying to bridge the performance gap. Workshop and training programs, team discussions, new methods of accountability and the rewarding of personnel for dexterity and commitment to organizational goals are to be executed fairly and in a manner which is verifiable. The business organisation management must also ensure that it exploits the use of communication within and outside the organisation.
To this effect, certain policies, programs and practices must be put in place to ensure that there is effective and sustainable communication culture in an intra-organisational sense. Therefore, open-door policies and round table meetings are to accompany the use of conventional means and mediums of communication such as the facsimile, telephones, letters and memos. This will ensure the inculcation of a true sense of security among the employees. Ensuring security among organisational personnel is the ultimate security measure that an organisation can work towards, given that it is the personnel who envision, inherently harbor and directly and physically perpetuate the mission, vision and objectives that the organisation seeks to achieve.
Conversely, fostering security on the side of the clients may demand the execution of an array of actions. The business organisation must make strident measures to ensure that the provision of high fidelity products and services is a reality and part of organisational culture. This is to ensure that the client realizes that the organisation has cut for itself, a competitive edge for its products and brands that are in the market, as opposed to other brands that are in the market. The same trend is to be maintained despite the fluctuations that take place due to the market forces. Thus, the organisation will have redefined its brand in the market.
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According to Liebowitz (2008), by merely seeing the brand, the market will be easily identifying the brand or the label of the brand with excellence and standard. The organisation may also make another crucial step to apply the law of patenting rights to ensure that its products or services are protected from counterfeiting or copying. By resorting to this approach, the business organisation will have killed two birds with one stone: protecting the clients from counterfeits and substandard goods; and protecting the organisation from the fraudulent misuse of its brand or logo. This is important, given that whenever quality of a product is seen to wane, clients are known to resort to other brands, given the stiff competitiveness that perennially but fluidly characterize the market.
As far as creditors are concerned a business organisation has to make necessary measures to ensure that it has favorable credit worthiness. This may need the organisation to diversify risks so as to ensure that in case of any eventuality, the business organisation can still save itself of the danger of running bankrupt, while staying in operation. This may help creditors invest more into the business since risks which always chase away investors will have been attenuated.
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It is also important that a business organisation in its bid to ensure security for its creditors should insure itself against risks that may lead to its downfall. Some of the risks that an organisation may take an insurance cover against may include: fire, storms and hurricane and accidents. The only risk that may not be taken care of is damage incurred as a result of political riot since there is no such legislation which allows for the same provision. The importance in this approach is that most investors harbor fears in investing in businesses due to the high risks that may underpin the business environment and operations. Therefore, by taking an insurance cover, investor confidence will have been bolstered, thus leading to the realization of more and stronger lenders.
The confidence of the government is a value that no business organisation can sidestep. This is because, it is the government which regulates and modifies through its policies, the corporate environment, so as to sustain entrepreneurship. Mills (2008) maintains that against this premise, the organisation must ensure that it remains faithful to taxation and truthful reporting. Truthful reporting and taxation go hand in hand, given that the former entails the issuance of the fiscal statements of accounts such as balance sheets, and trading profit and loss accounts so that the Internal Revenue Service is able to calculate the rate of tax it is to exact. This is a provision that is well prescribed in the Revenue Act of 1862.
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