Heineken’s Key Shareholders and the CEO’s Role

Heineken’s Key Shareholders and the CEO’s Role
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Heineken N.V is one of the major players in the beer brewing industry with a legacy running for a century and a half, and still expanding its portion of the industry’s market share. Maintaining such an impressive streak in the highly competitive, and equally challenging sector requires and demands an effective collaboration of efforts amongst all the main shareholder groups of the corporate organization. Heineken N.V endeavors to embrace sustainability in both its production and daily operational activities by engaging with its stakeholders for continuous growth and expansion of the corporate’s market share and revenue base.
The main stakeholder groups for Heineken N.V include the governments of countries within which it operates, suppliers, NGOs and international organizations, investors, employees, the customers, and the other industry players CITATION Hei18 \l 2057 (Heineken, 2018). The growing concern over the abuse of alcohol and the adverse effects of alcohol consumption have seen governments imposing or rather implementing regulatory policies seeking more responsibility from the brewers on curbing the worrying trend. Heineken N.V engages the governments by seeking local partnerships in campaigns for responsible consumption and complying with the advertisement regulations. The corporate organization further engages the governments of the host nation in designing employment and empowerment programs aimed at addressing the issue of unemployment in the said countries. The government also expects Heineken N.V to adhere to the taxes imposed, which the organization pays in contribution to the economy of the host nation.
Suppliers also form a part of the main shareholders as they play a significant role in ensuring the availability of the raw materials needed for production and distribution. The suppliers also collaborate with Heineken N.V in complying with the sustainable production standards. Heineken N.V, on the other hand, commits to ensuring timely payment of the suppliers for a smooth running of the supply chain. NGOs and international organizations such as World Resources Institute also advocate for compliance with responsible tax, sustainable packaging, and local sourcing by the corporate organization. Heineken N.V frequently engages with the important shareholders to check on its performance on the issues and areas for improvement. Another shareholder group with a very important role in the corporate organization consists of the investors. The group invests its revenues into the organization and thus ensures the smooth running of daily operational activities and the expansion agenda. The investors need to be updated on the organization’s growth and development of the executive, which the company does through its various correspondence, meetings, Annual General Meeting (AGM). Employees as shareholders also seek personal development while working for and with Heineken N.V, alignment with the corporate’s values and goals, and a good relationship with the leadership and the customers as well. The employee engagement index score of 78% in 2016 with over...