The Government

In any company, the shareholders are stakeholders because the company’s actions affect them.

In the case of our company, since the government is the sole shareholder, the government becomes our main stakeholder.

Our company uses government owned assets. So how we use them affects the government.

Our company makes profits and contributes a large portion of it to the government. So the government gets revenue through our actions. The tax on our profits are also collected by the government. The taxes paid by employees from their earnings is also collected by the government. So the government benefits when our company’s financial performance is good. On the other hand if our financial performance was bad in any year and we end up making a loss, the government will lose the revenue from us. Further, the government may have to contribute money to run the airport operations. So either was the government is affected by our actions.

When we develop the government’s assets (e.g. we put up a building at a vacant site at the airport) the value of the assets will increase. So the government benefits.

Indirectly, the airport operations help the government in other areas as well like tourism, external trade and international relations.

In this manner the government becomes one of our stakeholders.

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