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Stakeholder Analysis on Xylem Inc

A Formal Definition of Stakeholder

Stakeholders of Xylem Inc are the groups or individuals on which the organization is dependent for its continued survival or which have a legitimate moral or legal claim on. Stakeholder can also be defined as any identifiable group or individual who can affect the achievement of Xylem’s objectives or who is affected by the achievement of the firm’s objectives (Gossy, 2008). There should therefore be a bilateral relationship between Xylem Inc and its stakeholders. This also means stakeholders have a legitimate claim on Xylem Inc.   

Identify the Key Stakeholders of Xylem Inc.

Beinga leading global water technology provider, enabling consumers to move, treat, test and economically use water in public utility, housing and industrial structure services, industrial and agricultural settings, Xylem has both primary and secondary stakeholders. Gossy (2008) says that the primary stakeholder of Xylem Inc include shareholders, investors, employees, customers, suppliers, the governments in countries in which Xylem operates and communities. The primary stakeholders are groups of individuals and institutions without whose continuing participation Xylem Inc cannot survive as a going concern. Xylem provides its stakeholders with up to date information about the company’s operations, strategic plans and decisions. Workers can access Xylem policies and company rules via an internal web portal. Shareholders and investors gain knowledge about Xylem through webcasts, Xylem website, investor meetings and news releases (Kenny, 2012).  

Xylem Inc has secondary stakeholders who are defined as groups or institutions that influence or affect or are influence and affected by Xylem, but they are not engaged in transactions with Xylem and are not essential for its survival (Andriof, 2003). These include special interest groups and the media (Gossy, 2008). Special interest groups or the media contact Xylem’s top management or board members through sealed letters in envelops by sending them to the company’s corporate secretary.

The Importance of Xylem Key Stakeholders

Key stakeholders of Xylem Incare those stakeholders who are direct participants in the planning process of the company. They include board of directors, directors, chief executive officer, top management, shareholder representatives, and staff (Gayla, Finley & Galloway, 2001). Government representatives play an important role in ensuring that Xylem adheres to government policies and regulations (Kenny, 2012). Community stakeholders who should be consulted during water planning process and who need to be informed about the results of these efforts include clients, donors, community leaders and other agencies and potential partners and other experts (Gayla, Finley & Galloway, 2001).

Board of directors and executive directors are essential for the success of Xylem’s strategic planning. The board of directors at Xylem Inc approve the mission of the company and review it at least every three years. They also align policies with strategic direction of the company. Gayla, Finley & Galloway (2001) says that board of directors and executive directors guide the planning process and approve the strategic direction and priorities of Xylem Inc. According to Andriof (2003) these key stakeholders of Xylem ensure adequate financial resources for the planning effort and at the same time monitor external relations with key external stakeholders to gauge the impact of strategic changes within the company.

Xylem employees have the expertise, knowledge about clients and ultimate responsibility for implementing the plan. Andriof (2003) says that the importance of having the members of staff interact with executive directors is because they have vested interests in the practicality of the outcome of the strategic plans and they remain with the company through the struggles of implementation.     

Xylem Inc.’s Stakeholders and their Interest to Xylem

Xylem’s short and long term success requires input, contribution, assistance and support of everyone with the company. While board of director’s leaders, executives, mangers and supervisors have the authority to ask all members of Xylem to share ideas, key stakeholders are capable of substantially contributing to the company’s success. They achieve this through influencing, persuading or inducing others to exert above average levels of effort and exhibit ideal behaviour (Simerson, 2011). Stakeholders at Xylem ensure sustainable development of the company that balances the economic, environmental and social concept of the company current and future operations (Kenny, 2012).

Xylem has various stakeholder groups: some directly related to the company, such as employees, providers of credit, suppliers and customers. Employees at Xylem are concerned with they pay and working conditions and how the company’s strategy will impact on its operations (Mallin, 2012). Xylem needs to consider and comply with employee legislation, whether related to equal opportunities, health and safety at work or any other aspect. Suppliers of Xylem have an interest in the company’s capability to pay for goods and services in a timely fashion. Suppliers as key stakeholders are interested in Xylem’s continuance because they wish to have a sustainable outlet for their goods and services.  

Xylem customers are key stakeholders of the company. Customers will therefore want to try to make sure that they can buy water solutions time and again from the company. Mallin (2012) says that customers are more aware of social, environmental and ethical aspects of corporate behaviour and will try to ensure that the company supplying water solutions is acting in a corporately socially responsible manner. Providers of credit are key stakeholders and want to be confident that Xylem will be able to pay its debts after they lend it. Mallin (2012) says that credit providers seek assurance from the annual report accounts and from various management accounts and forecasts that Xylem produces.

Kenny (2012) says that governments have interest in Xylem’s operations in diverse ways. Governments try to make sure that Xylem acts in a socially responsible way, taking account of social, ethical and environmental considerations. Mallin (2012) says that governments analyse Xylems trends for purposes of monetary policy, and market supply and demand of water solutions and services.

Power VS. Interest in Relation to the Stakeholders

The power versus interest map arrays stakeholders according to their power to place a claim on Xylems attention, resources and output (Bryson, 2011). Those with high power and high interest are called key players while those with high power and low interest are called context setters because their power helps set the context but they are not interested enough to be players. The mission and strategic plan of Xylem certainly must take the key players and context setters into account in some way (Bryson, 2011). 

The relationship of Xylem and governments is of high importance and should be managed closely. The general public on the other hand are not concerned with individual implementation programmes of Xylem and therefore they have low stake in the company. Employees and suppliers do have a lot of power over proceedings and they need to be kept informed during any interactions with Xylem (Bryson, 2011). The key players who include shareholders, CEO and managers and customers have high power and high interest in Xylem. They therefore have impact regarding the decisions of the company’s strategic plans. Shareholders, CEO and managers and customers have a high level of both powers over and interest in the company whose demands require constant and full management attention. The key stakeholders have a high degree of power whose interest to influence the Xylem’s direction.

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