Stakeholder Analysis Report: BT Conflicts and Business Ethics

This report focuses on the role of stakeholders in British Telecommunications (BT) plc, a major UK telecommunications company. It identifies key stakeholders including shareholders, employees, and customers, and analyzes the conflicts of interest that can arise between them and the business. The report highlights the importance of managing stakeholder relationships to reduce environmental impacts and promote ethical business practices. It provides examples of conflicts, such as those related to infrastructure investments, shareholder returns, pricing, and employee security. The report emphasizes the need for top management to navigate these conflicts to ensure both company and stakeholder satisfaction, ultimately promoting long-term business success. The report also touches on BT's initiatives to increase shareholder value, employee skill development, and customer satisfaction through product innovation and environmental responsibility.

Running Head: Role of Stakeholders in business 0
Role of Stakeholders in business
Report
Student name

Role of Stakeholders in business 1
British Telecommunications (BT) plc is the most popular and famous company in the field of
telecommunication. It is the largest company in the UK. The company has more than 75000 employees
and provides telecommunication services to its customers in more than 175 countries around the world.
Its main services include networked IT services at a global level, such as broadband services and internet
products and mobile and leased line services (bloomberg.com, 2019).
BT is continuously grown in the market based on its products and services to its customers. The
company provides new mobile technologies with new features for businesses as well as for homes. The
company must develop and sustain a good relationship and behavior with its stakeholders, such as
customers, employees, and many others. BT has different stakeholders, which are connected to the
company and provides different types of benefits, such as shareholders, customers, suppliers,
employees, government regulators, and different communities.
The company manages a good relationship with their stakeholders to reduce the environmental impacts
of its operations. A company made a decision based on its stakeholders in a business. BT has internal
and external stakeholders, such as employees as an internal stakeholder, and customers as external
stakeholders.
Enlightened companies, such as British Communication believe that give importance to stakeholders in
decision-making and it is the best approach in business. In addition, the company has legal obligations
towards government agencies and industry regulators. In the long term, a relationship requires meeting
ethical and legal requirements in a business. The company considers its stakeholders as a partner and
maintain good behavior with them.
Shareholders:
Shareholders are internal stakeholders of the company, which buy shares in a company. Shareholders
are not a part of day-to-day decisions and they have the right to vote in a general meeting of the
company on an annual basis.
They are part of the election for chose director of the company as well as approve the annual reports
and accounts. Shareholders are very important for a business and BT has good shareholders and put
money into the business. BT needs its shareholders by providing money to grow the business. BT will

Role of Stakeholders in business 2
keep shareholders acknowledged about its annual reports and their strategies for success and growth
(Probyn, 20118).
The company provides rewards to its shareholders by providing them different types of profits. It
provides dividend twice a year to their shareholders.
BT provides direct profit to their shareholders by:
1. BT increases its growth using offering new products and services in the market to increase sales
2. Create new customers based on their reputation in the market
3. Reducing cost using profit margin and provide satisfaction to their shareholders.
BT has created objectives, which will provide growth to their business. The company generates energy
for their business from renewable energy sources, which is more than 25 percent.
Employees:
Employees are the assets of a company. Therefore, BT provides training and education to increase
employee’s skills, such as creative thinking, problem-solving, and many others. BT creates a program to
develop the skills of their employees using the apprenticeship framework. The company is always
motivating their employees from intrinsic and extrinsic benefits, as a satisfied employee provide high
performance in their work. BT has provided work from home facility to their employees to save time and
money in traveling (moneycontrol.com, 2017).
Customers:
Customers are an external stakeholder of the BT, the company attracts, and keep its customers using
different products and services. BT is investing more than 3 billion pounds to provide internet services,
such as super-fast broadband services to its customers in the UK. The company provides
environmentally friendly products to its customers to overcome the impact on different things, such as
the environment, climate, and many others. the company has use new devices, which are almost 40
percent less energy. It also contains 25 present less plastic than previous models
(businesscasestudies.co.uk, 2019).

Role of Stakeholders in business 3
Stakeholder’s conflict:
There is some conflict generated between different stakeholders. There are some examples, which
involve BT stakeholders:
 The company requires to install fiber optical cable to provide super-fast broadband services
to their customers but may cause many issues to roadways while the cables are being laid
across the country.
 The company’s investment in different community activities, which are helpful for different
people, but some shareholders, may object that investment because it does do not provide
direct profit to them.
 Customers require services at low prices. however, shareholders may feel that low prices
would generate low profit for them
 The company has a policy in which no redundancies.in addition, it provides security to the
employees of the company but shareholders feel that it affects the profit and performance
of the company.
Top management and managers must try to overcome these conflicts between stakeholders. It is a
critical situation. Moreover, decision-making can make both company and stakeholders happy with a
better outcome.

Role of Stakeholders in business 4
References
bloomberg.com, 2019. Company Overview of British Telecommunications plc. [Online]
Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=39347960
[Accessed 9 June 2019].
businesscasestudies.co.uk, 2019. Stakeholders as partners. [Online]
Available at: http://businesscasestudies.co.uk/bt/stakeholders-as-partners/introduction.html
[Accessed 9 June 2019].
moneycontrol.com, 2017. British Telecommunication to cut 4,000 jobs in restructuring after "challenging
year". [Online]
Available at: https://www.moneycontrol.com/news/world/british-telecommunication-to-cut-4000-jobs-
in-restructuring-after-challenging-year-2276667.html
[Accessed 9 June 2019].
Probyn, A., 20118. Huawei's history in Britain may help explain why Australia is so nervous. [Online]
Available at: https://www.abc.net.au/news/2018-06-16/huawei-britain-history-helps-explain-australia-
anxiety/9875582
[Accessed 9 June 20119].