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Domestic and international (global) companies have stakeholders. Which type of company...

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lscrivy | Student, Undergraduate | (Level 1) Salutatorian

Posted June 22, 2013 at 1:18 AM via web

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Domestic and international (global) companies have stakeholders. Which type of company has more stakeholders, or do they have the same number of stakeholders? Explain.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted June 22, 2013 at 1:30 AM (Answer #1)

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These different types of companies have different numbers of stakeholders.  However, they have the same number of categories of stakeholders.

With reference to businesses, stakeholders are individuals or groups that are affected by and/or that affect the decisions that a company makes.  These people and groups are said to have a stake in what the business does. 

There are only a certain number of kinds of stakeholders that any company can have.  This set of types of stakeholders does not really differ depending on whether a company is multinational.  For example, both domestic and multinational companies affect governments and are affected by them.  Both types of firms affect and are affected by their customers and their workers.  Both types can have an impact on the community in general if, for example, they engage in practices that harm the environment.  These are true of companies regardless of how many countries they do business in.

However, multinational companies are likely to have a greater number of stakeholders.  For example, they will have to deal with multiple governments rather than just one.  They will often have more workers and customers.  They have the ability to impact more people.

Thus, multinationals have a larger number of individual stakeholders, but they have the same number of types of stakeholders as domestic companies.

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