M RahmanStakeholders of HSBC (Stakeholder Analysis)
Stakeholders of HSBC are those individuals, groups, or organisations who have an interest in its actions, policies, and decisions. They can be internal, such as employees and shareholders, or external, such as customers, suppliers, and the public. Understanding them and their interests is essential for HSBC to remain competitive and successful.
HSBC is one of the biggest international banking and financial services companies in the world. It has a range of stakeholders that play a crucial role in its success. These stakeholders have varied interests and power.
Who are the stakeholders of HSBC?
HSBC’s stakeholders are divided into two groups i.e internal stakeholders and external stakeholders.
Internal stakeholders of HSBC
Internal stakeholders of HSBC are those who have a direct relationship to it, such as employees, shareholders, and the Board of Directors.
Employees of HSBC
Employees are the most important internal stakeholder of HSBC as they provide the main source of labour for the company. The bank must ensure that the employees are well-trained, motivated, and provided with the necessary resources to perform their duties.
Around 220,000 employees work at HSBC globally (Statista, 2022). Their interests lie in job security, safety, and fair wages. They also have a high level of influence on the company as they are the ones who implement its strategies and operations.
Therefore, HSBC must ensure that its employees are motivated and have the necessary resources to carry out their tasks. However, it should be mentioned that some of its employees in different countries have protested certain policies which shows that it needs to work more on employee satisfaction.
Shareholders of HSBC
Shareholders have a vested interest in the success of HSBC. Their interests lie in the profitability and growth of the company, as they receive dividends and stock appreciation when this happens.
Shareholders also have a high level of influence on the company as they can vote on important decisions such as the appointment of board members and the adoption of new strategies. They invest their capital into the bank and expect to receive a return on their investment.
HSBC’s Board of Directors
The Board of Directors is responsible for overseeing the management of the company and ensuring that it is pursuing its goals efficiently. HSBC aims to deliver sustainable value to its shareholders.
The Board of Directors aims to promote the bank’s long-term success and delegates day-to-day and strategic management activities to the Group Chief Executive who is supported by the Group Executive Committee (HSBC, 2023).
External stakeholders of HSBC
External stakeholders of HSBC are those who do not directly work with it, such as customers, the public, and the media.
Customers of HSBC
Customers are one of the most important external stakeholders of HSBC. They are essential for its success as they are the ones who purchase its products and services. Customers have a good level of influence on it as they can decide which products and services to purchase and which ones to ignore.
The interests of customers lie in receiving quality products and services at competitive prices. They are also interested in the security of their assets and the safety of their data. As a result, HSBC needs to ensure that its products and services meet the needs of its customers in order to gain their loyalty.
Customers are a major source of HSBC’s revenue. Therefore, it must ensure that the customers are satisfied with its products and services, and that they are provided with the best possible customer experience.
Suppliers of HSBC
Suppliers are the people and organisations that supply goods and services to HSBC. Their interests lie in receiving timely payments for the goods and services they provide.
Government
The government has a high level of power as it regulates the banking and financial services industry and can impose sanctions on companies that do not comply with its regulations. Its interests lie in the promotion of economic growth and the stability of the financial system.
Media
The media can shape public opinion about HSBC’s activities. Its interests lie in providing the public with accurate and timely information.
How does HSBC communicate with its stakeholders?
Effective stakeholder communication is essential for the success of any company. HSBC communicates with its stakeholders through various channels, such as meetings, emails, newsletters, press releases, and social media. It also holds annual general meetings for its shareholders and has a dedicated website for its customers.
HSBC has a stakeholder engagement program which seeks to engage stakeholders in the company’s activities and decisions. It engages with the customers through surveys and by listening to their complaints (HSBC, 2023).
HSBC engages with regulatory bodies with in-person and virtual meetings. It also engages with its employees through Snapshot Survey, Exchange meetings, and Speak-up channels.
Through the engagement programme, HSBC seeks to understand the interests and concerns of its stakeholders and to ensure that their views are taken into account. This understanding is very helpful to devise future strategies.
Conclusion
Stakeholder analysis is an important part of any stakeholder management strategy. By understanding the stakeholders and their interests, HSBC can ensure that it is pursuing its goals efficiently and effectively.
Customers, shareholders, employees, suppliers, government, and the media are all stakeholders of HSBC. Each of these stakeholders has a vested interest in the success of the company and a varying level of influence on its operations.
It is therefore important for HSBC to identify the interests and power of each stakeholder group in order to ensure that its operations are in line with their interests. Indeed, it has a very good stakeholder engagement programme that serves the purpose very well, even though it has areas for improvement.
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Last update: 12 January 2023
References:
HSBC (2023) About us, available at: https://www.about.hsbc.co.uk/ (accessed 01 January 2023)
Statista (2022) Number of employees at HSBC, available at: https://www.statista.com/statistics/258419/total-workforce-at-hsbc-from-2010/ (accessed 31 December 2022)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
