Balancing stakeholder needs
Last week, the Bank of England once again left UK interest rates unchanged at 0.5%. The Bank’s Monetary Policy Committee (MPC) has held rates at its current record low for more than three years. For mortgage holders, this has provided benefit in keeping monthly repayments low at a time when the UK economy is putting pressure on household budgets. (BBC, 7th June 2012)
However, many savers are seeing the value of their funds dwindle as interest rates continue to lose pace with the rising cost of living. On average, an instant access account in the UK only offers 0.22% in interest, Bank of England figures show.
Balancing the interests of all stakeholders is a challenge for all types of organisation. Reed Elsevier, one of the world’s leading publishers and providers of information, has to ensure that its actions not only fit with the requirements of shareholders, customers, employees and suppliers, but also meet the demands of its long term sustainability strategy.
Some business activities may not give immediate financial return on investment but support the business’ ethical standards. Reed Elsevier needs to ensure the benefits are communicated to all stakeholders.
For example, Reed Elsevier invests time and money in providing employees with full and relevant training on its Code of Ethics and Business Conduct. This ensure not only that they can provide the highest levels of customer service, but also that they can reach their potential.
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