The company I decided to research is SunTrust Banks, Inc. SunTrust Bank, Inc operates more than 1,650 branches in about a dozen southeastern and Mid-Atlantic States. The bank offers retail and commercial services such as credit, deposit, and investment services. SunTrust also operates with subsidiaries that offer mortgage, wealth and investment management, insurance, investment banking, equipment leasing and brokerage services.
The mission and goal for SunTrust bank is to help people and institutions prosper, provide financial service that meets the needs, exceed the expectations, and enhance the lives of our colleagues, clients, communities, and ultimately our shareholders. There are many different stakeholders with SunTrust Bank. The primary stakeholders also known as market stakeholders are the stockholders, creditors, employee, and customers. All these stakeholders provide different transactions to the business. The relationships and roles vary between each primary stakeholder. The relationship and role of the stockholder is to invest in the business.
The stockholders receive a satisfactory return on their investment into the business. Stockholders exercise voting rights based on the share ownership. Stockholders also have the right to inspect company books and records. The relationship and role of the creditor is to lend money to the company for working capital and to collect payments that have not been made. Creditors help the bank to achieve its financial goals. Creditors can also repossess and seize any property that has a negative balance due to lack of payment such as cars, homes and other property.
The relationship and role of the employees is to serve the customer by providing excellent customer service. It is the employee goals to make sure that all the customer needs are met in order to maintain a steady customer base. The employee role is very important because they are the ones who deal with the customer through face-to-face and phone contact. The relationship and role of the customer is also very important to SunTrust Bank. This role and relationship is important because the funds that the customer deposit into the bank helps keep the banking running.
Any funds that are deposited are considered working capital and the bank uses these funds to disperse money to other customers as well as having the funds available when the customer needs them. The secondary stakeholder also known as nonmarket stakeholders consist of the community, nongovernmental organizations, media, business support, government and the general public. Secondary stakeholders do not engage in direct economic exchange with the company, but is affected by or can affect its action. The role and the relationship of the community are to provide customers and investors to the company.
The community that a business is located in helps to develop that community and the economy. The relationship and role of the nongovernmental organizations is to monitor the company’s actions and policies to make sure that they are abiding by the rules and regulations. Nongovernmental organizations roles are to protect the public’s interest in the company. The role and relationship between the company and the media is also a very important. The role of the media is to keep consumer informed on the issue concerning the company. The relationship of the media with the company provides the public an image of the company whether good or bad.
The media shows the public how the company is doing and what the company is doing. Business support has the role of helps the company with research and information about the changes in the industry and the environment. The relationship between the company and the business support is to make sure that the company has all the information needed to make informed decision on the day-to-day changes in the economy as well as the environment The role of the government is to promote economic development and encourage social improvement.
The relationship of the government with the company is to make sure the company has all the laws and permits it needs to operate effectively. The public has the role of protecting social values and minimizing the risk of the company. The relationship of the public is to make sure that the government as well as the company is doing what is right for the people involved in the company. The secondary stakeholders although they do not conduct any direct market exchange with the company, they have major roles and relationships to the company to maintain is success. Recommend ways the stakeholders can influence the destiny of your business.
There are many ways that the stakeholder can influence the destiny of the company. The first influence that the stakeholders have is the voting power. This means that the stakeholders have the right to cast votes. The stakeholders that usually cast the votes are the stockholders and their voting power depends on the percentage of stock they own in the company. The customers have the economic power. The customer can exercise this power by refusing to use the services of the bank. The customer may even boycott the bank if they fell that the bank is operating unethical or illegally.
The government has the political power to make or break the bank. The government exercises this power through legislation, regulations, or lawsuits. The stakeholders can also exercise political power by organizing protest against an action that the bank has taken that they are not in agreement with. The stakeholders also have legal power that they can exercise. These powers are used to bring lawsuit to the company for loss due to actions of the bank. This power can be used to bring lawsuits against other companies as well. When dealing with workers compensation and damages to the environment the stakeholders can exercise their legal power.
Create a plan on how you would encourage stakeholders to form a coalition to help you achieve your goals. Include a discussion of the specific assistance you think the coalition could provide. The first step in the plan to encourage stakeholders to form a coalition is to clearly and convincingly state my goal for the company and give ways that the forming of a coalition would be beneficial to the stakeholders and me. This includes conducting research and obtaining information so that I can answer any questions that the stakeholders may have.
In order for the coalition to be successful, everyone must have the same goals for the company. The stakeholders need to know that you have the best interest of the company at heart. Explain to the stakeholder the importance of the resource they have at their disposal that can help achieve the set goals. The next step is to set the rules under which the coalition will operate. The rules must be specific and followed by all the members. Organizing meeting to discuss the roles that each stakeholder will play in the coalition is important.
Letting the stakeholders know that each members has a specific role and that no role is bigger than the others are. These two steps encourage the stakeholders to form a coalition because it lets the stakeholders know that you have a plan and in order for the plan to work everyone must be on the same page if they want to receive the highest return on their investments into the company. Anticipate any challenges in encouraging stakeholders to form a coalition to help you achieve your goals and the steps you would take to overcome these challenges. There will be several challenges in encouraging stakeholders to form a coalition.
Difference in opinion will be the first challenge to overcome. The best way to overcome this challenge is to have meetings to discuss the different plans of actions to take to better the company. Listening to what each stakeholder has to say is important because it makes the stakeholders feel valued. When members of the coalition feel that, they are not achieving their goals in a timely matter it causes members to want to leave the coalition. This challenge can be overcome by encouraging the stakeholders to look at the process being made instead of the goal itself.
Reminding the stakeholders that the goals established will take time to achieve and it will not be done overnight. Doing this encourages the stakeholders to continue to work to achieve the goals for the company. Another challenge you must overcome to encourage stakeholders to form a coalition is time. This is a challenge because everyone has his or her own schedules and finding time to meet could be a great challenge. One way to overcome this challenge is by setting times that the stakeholders can meet face-to-face or via phone or internet meeting.
Phone and internet meetings can be very effective due to the advancement of technology. This can also be effective if you have stakeholders that are not locally based in the city that your company is in. When forming a coalition there will be challenges but the best thing to do is figure out solutions that will be beneficial to you and the stakeholders.
Lawrence, A. T. , & Weber, J. (2011). Business & Society: Stakeholders, Ethics, Public Policy (13th Ed. ). New York, NY: McGraw-Hill Irwin. SunTrust Banking Institute. ( 2012). Retrieved November 10, 2012, from http://www. suntrust. com/CommercialCorporateInstitutional