How does stakeholder power vary between developed and developing countries?

Stakeholder power often varies between developed and developing countries due to differences in economic stability, regulations, and societal norms.

In developed countries, stakeholders typically have more power due to the presence of robust legal systems, strong corporate governance structures, and a high level of economic stability. These factors provide stakeholders with the necessary tools and platforms to voice their concerns and influence corporate decisions. For instance, shareholders in developed countries can exercise their voting rights to influence a company's strategic direction. Similarly, employees can leverage labour laws and unions to negotiate better working conditions. Customers, too, can exert influence through their purchasing decisions and public opinion, especially in the age of social media.

In contrast, stakeholders in developing countries often have less power due to weaker legal systems, less stringent corporate governance, and economic instability. These factors can limit the ability of stakeholders to influence corporate decisions. For example, shareholders may have limited voting rights, or their rights may not be adequately protected by law. Employees may lack the protection of strong labour laws or unions, making it harder for them to negotiate better working conditions. Customers may have fewer choices and less influence over companies, especially in sectors where there are few competitors.

Moreover, societal norms and cultural factors can also influence stakeholder power. In some societies, certain stakeholder groups may be marginalised or their voices may not be valued as much. For instance, in some developing countries, women or minority groups may have less influence as stakeholders due to societal biases or discrimination.

However, it's important to note that these are general trends and there can be significant variations within both developed and developing countries. Factors such as the specific industry, the size and structure of the company, and the nature of the stakeholder group can also influence stakeholder power. Furthermore, globalisation and technological advancements are gradually changing the dynamics of stakeholder power, making it a complex and evolving field.