Also, businesses should be open to the idea of changing the way these relationships are formed and maintained to make way for the changing business environment. "Changing the prevailing relationship a firm has with its stakeholders offers an opportunity for innovation and the economic rewards that accompany such innovation" (Harting, Harmeling & Venkataraman, 2006, p.44).

Conclusion

In short, different stakeholder groups have a big impact on the performance of a company. Their influence spreads across all aspects of the business including its financial performance. Good relationship with these stakeholder group are vital for the success of the company and the benefits of maintaining such good relations far outweigh the drawbacks that come with it.

References

Friedman, Andrew; Miles, Samantha. (2006). Stakeholders: Theory and...

Boston: Oxford University Press.
Choi, J., & Wang, H. (2009). Stakeholder Relations and the Persistence of Corporate Financial Performance. Strategic Management Journal, 30(8), 895-907. Retrieved from EBSCOhost.

Harrison, J.S., Bosse, D.A., & Phillips, R.A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, 31(1), 58-74. Retrieved from EBSCOhost.

Kacperczyk, A. (2009). With greater power comes greater responsibility? takeover protection and corporate attention to stakeholders. Strategic Management Journal, 30(3), 261-285. Retrieved from EBSCOhost.

Harting, T.R., Harmeling, S.S., & Venkataraman, S. (2006). INNOVATIVE STAKEHOLDER RELATIONS: WHEN "ETHICS PAYS" (AND WHEN IT DOESN'T). Business Ethics Quarterly, 16(1), 43-68. Retrieved from EBSCOhost.