Corporate responsibility and stakeholders

by The Times 100 on Friday 28th October, 2011

A second city centre tram link in Manchester, called the Second City Crossing (2CC), has got the backing of the city council. Work on the 2CC, if approved, would begin in 2013 and is scheduled to be finished in late 2016. The project, along with a new link to Manchester Airport, will cost £520m. With passenger numbers set to treble by 2021, an alternative city centre route was 'essential' to cope with increased demand. Councillor Nigel Murphy, Manchester City Council's executive member for the environment said, 'We're pleased that Manchester residents are in favour of this important new link which will greatly improve the public transport network across the city centre.'

However, the new line will require the relocation of Manchester's main war memorial. This is a highly sensitive issue and Manchester City Council's Chief Executive Sir Richard Leese said. 'We will continue to consult with key stakeholders, including heritage agencies, to ensure that the new location is a fitting tribute to the brave men and women who have made such a sacrifice for their country. The cenotaph will be moved near the town hall and more of a focal point will be made of it. The plans are supported by church and armed forces authorities and the British Legion do not object.' (BBC, 26th October 2011)

Stakeholders have the potential to have a significant affect on a company. Although the primary aim of publisher Reed Elsevier is to ensure the company remains profitable, it takes particular interest in keeping all its stakeholders well-informed about the business' activities. This not only helps to maintain its market leadership but also demonstrates how Reed Elsevier upholds its corporate values. It believes its approach to dealing with stakeholders makes good business sense and makes the company attractive to investors. Communicating and consulting effectively improves customer loyalty, employee engagement and supplier and public support, all of which contributes to ensuring shareholders receive improved rewards.

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