Employees are the workforce behind the success of an organization who use their skill and expertise to contribute in meeting the organization’s objectives. They are an important stakeholder in business because their jobs and livelihood are at stake which inspires them to work with an expression of loyalty towards the organization. In return, they expect rewards from the management for abiding by the company’s strategies formulated by decision makers for growing its top-line and bottom-line.
Hence it becomes very essential to ensure that commitment to work from employee’s side and to reward from the employer’s side are always honored, absence of which may lead to lack of trust causing decline in productivity. It is equally important for the employees to honor the values and culture of the organization so that their actions are in line with the vision, mission and aspirations of the company thus leading to lesser conflicts. Thus, it is imperative that the relationship between employees and employers should be nurtured for ensuring profitable growth of the organization.
2.4.3 Suppliers
In addition to being an important member of the value chain by providing materials and services to an organization, suppliers facilitate the smooth operations of a firm which helps both the parties in gaining. For e.g. if the supplier network is well knit, the organization will deliver its products successfully, and if customers are satisfied, they would book more orders which would in turn bring business to suppliers. The need of the hour is to involve suppliers a partners in business which is built on the foundation of establishing a long term association based on mutual trust and collaboration. This relationship is important because if suppliers take the advantage of trust of the partners by decreasing the quality of their products, the customers would feel cheated which would create a vicious circle thus proving detrimental to the organization as well as to the suppliers.