Research On The Problem Of Stakeholders' Balance During Wuxi Gas Industry's PPP

Organization is the combination of all the contracts among stakeholders. Stakeholders involve shareholders, management, creditors, employees, suppliers, consumers, governments, and the public, and so on. They invest their own resources to the organization, and meanwhile, they own the organization as well. The theory on stakeholders questions the opinion of"shareholders first". Both from the practice in developed countries and the researches overseas present that organizations succeed when they consider the stakeholders."Pareto improvement"means, in some economic environment, some part of person's welfare and satisfaction will be improved, but not to decrease other person's welfare or satisfaction, if the systematic procedure can be changed or re-arranged. So, there are no losers in the reforming of the system procedure, but at least one winner.Privately running is a necessary trend in the reforming process on the public enterprise. It improves the service model of the public enterprise based on the systematic procedure, and introduces positive competition methods. So, it can avoid the failure of the supply system of the public enterprise. In terms of the analysis both to the theory of Pareto improvement and the theory of stakeholders balance, this report presents the development process of these two theories applied in the process of Wuxi Gas running privately, and how the organization achieve the balance among stakeholders after its joint investment.