The Board of Governance
According to Ferrell, Fraedrich and Ferrell (2006), primary stakeholders are defined as, “those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and shareholders, as well as governments and communities that provide necessary infrastructure” (p. 32). In the context of our research, IMF is the firm whose existence has to be ensured and the primary shareholders are those whose presence in the body ensures that the body continues to survive. Basically, it can be argued that all the members and employees of the body constitute the primary stakeholders of the organization. This is explained below:
The Board of Governance
This is the highest level of governance at the organization. Thought this board delegates most of the tasks of running the organization to the Executive Committee, it should be noted that this board actually determines the existence of the organization because of the authority to accept and compulsorily withdrawals of members of the body. This board also has the authority to amend the by laws and articles of agreement. The board approves the quota increases and special drawing rights s allocations. It should be noted that the board of Governors are in charge of ensuring that the executive committee are elected and run the body. This board therefore is the core of all the operations of IMF. It is clear that without this board the body will not be able to run and thus the board of governors is part of the primary stakeholders. The names of the members are listed in the official website of IMF
The objective of the body is to ensure that there is cooperation in terms of international monetary and that the macroeconomic conditions become stable. It should be noted that this body was formed with an aim of stabilizing the global economy through shifting of surpluses to regions of deficits. For this objective to be achieved there has to be cooperation by from both the regions (constituencies) with surpluses and those with deficits. The constituencies consisting of the wealthy developed nations such as USA, UK, France, Japan and Germany are very vital for the existence of IMF as they control 40 percent of the fund’s vote share. Without these five members it is true that there will be no funds to loan out and hence the body can not exist without them. They also truly form part of the primary stakeholders.
The members from the other constituencies for instance Africa Group I and II constituencies equally form part of the primary stakeholders because without these them the IMF funds can not be loaned and thus defeating the purpose of the existence of the body and hence its survival. It should be noted that the major contributors of the body (the five permanent members) do not get loans from the funds and thus if the body has to survive it is very evident that the constituencies consisting of poor nations for instance Kenya, Congo, Korea etcetera must be part of the body for it to survive and thus they too form part of the primary stakeholders.