D1
Evaluation of the influence different stakeholders exert on Barclay’s
Barclay’s have different stakeholders which influence them as an organisation differently and their impact is very important.
Firstly, I am going to talk about a case which had a massive influence on Barclay’s in 2013 from an external stakeholder; this is Africa’s biggest remittances provider who provided money services sending money from the UK to Somalia. A row aroused when Barclay’s agreed to keep its account open for a period of time that allows the company to find a replacement bank. The UK government thought that the service was as at risk of being used for money laundering and terrorist funding, and did not meet new regulatory requirements.
After many discussions, Barclay’s reversed their opinion on the reason for this service as Dahabshiil took Barclay’s to Court due to them needing the service so much that the case successfully one for their side. Barclay’s was put under pressure to make this decision, yet they thought that this was not as profitable as they originally thought. Barclay’s did not manage to have much say into this case but they were forced to continue doing business transactions with this particular stakeholder (a company that used Barclay’s to send money to and from the UK).
This case was then turned into a pressure group as people of Somalia were against terminating the service with Barclay’s. When this issue was taken to court it meant that they was not just representing the company but the country also, as this is who affects it the most, due to the circumstances of the country, they need the money sent from family and friends in order to survive. Oxfam, as a charity also had their input due to them wanting to keep the service as they support the people who are living in devastating hard living environments where many people are struggling to survive. This would have a negative effect on everyone.
This had a major influence on the company as it was forced to determine what the business was going to do, the pressure group formed big enough so that it helped formed a pressure group big enough to put significant pressure on the court to make sure that the court had no other option but to force Barclays into the continuation of its business transaction with Dahabshiil. This shows that the more stakeholders there are the more influence they can have as a whole to the business. Lastly, the influence of this situation if they weren’t forced to keep business open could of left Barclay’s in a less profitable state than they started with. These stakeholders in a way have positively affected Barclay’s as they never realised how much income they were actually receiving. http://www.ft.com/cms/s/0/54aca3a4-c557-11e3-89a9-00144feabdc0.html#axzz3GISP1RiT Barclay’s trialled a new system in 2013 called 'Part of the Bankers' Automated Clearing System (BACS) crashed. Normally it sends out salary payments to employees' accounts at all the banks automatically. The money then takes three days to appear in accounts. This has left all external stakeholders at risk of having no money over the Easter holidays which is a very busy time of the year for many people. This has left people cancelling holidays and important dates in their diaries, due to Barclay’s system failing.
HSBC and Lloyds TSB where left struggling as their customers