Stakeholders

Stakeholders

1. Interest

   • Shareholders
     • They want the firm to be profitable to provide them with good dividends and improve share value
   • Managers
     • They receive salaries and perhaps bonuses so they will want the organisation to be successful
     • They also want responsibility and status
   • Employees
     • They want good services, job satisfaction, good working conditions and job security
   • Customers
     • They want the best quality products from the prganisation at the lowest price
   • Banks/other lenders
     • They will want to ensure that a business applying for a loan or with an existing loan ha sufficient funds to make agreed repayments
   • Suppliers
     • A supplier will want a business to be a success to ensure repeat custom as they depend on their custom for survival
   • Local community
     • Companies produce employment therefore generating wealth for an area, communities also have an interest that their environment is not harmed by noise or pollution
   • Central government
     • They want a business to be successful as they provide jobs, generate money and provide government with finance through taxes
   • Local government
     • They want the business to be successful as they provide jobs and make payments of business rates
     • A council can receive a good image if it can attract and retain successful organisations
     • Local government also want the service it provides (i.e. schools) to be successful, to meet central government targets, provide them with a good image and be able to justify budget spending
   • Charity donors
     • Corporate donors will want a charity that they donate to to be successful as it may provide them with good public relations
   • Taxpayers
     • They have an interest in publicly funded organisations to ensure that the taxes they paid are used effectively

2. Influence

   • Shareholders
     • They can exert influence on the firm by voting for particular directors and approving dividend payments at the AGM
   • Managers
     • They make important decisions regarding hiring staff, product portfolio, etc., which may or may not be successful
   • Employees
     • They can exert influence by the standard of their work and industrial relations (e.g. strikes)
   • Customers
     • Customers can choose to buy or not to buy an organisation's products or services an organisation makes/gives
     • Customers may recommend the organisation to friends/family
   • Banks/other lenders
     • They can exert influence by granting or withholding loans, setting loan interest rates, or requesting repayment or loans if an organisation ability to make repayments is in doubt
   • Suppliers
     • They can exert influence by changing prices, credit periods and discounts offered
   • Local Community
     • They can exert influence by petitioning companies or making complaints to their local authority
   • Central government
     • They can exert influence by producing legislation which businesses must comply with e.g. health and safety, environmental laws, etc. Economic policies affect business, e.g. if interest rates are increased the cost of business borrowing finance increases
   • Local government
     • They can exert influence on businesses by granting or not granting licences for hotels and pubs, providing subsided premesis, or granting planning permission
     • They also influence the services they provide, e.g. schools, by allocating funding from council budgets and setting operational policies for services.
   • Charity donors
     • They can exert their influence on a charity by giving or not giving donations. Donors of large amounts of money may specify the use to which their donations is put
   • Taxpayers
     • They exert influence by voting for political parties at national and local government elections