Stakeholders

Stakeholders

1. Internal Stakeholders

   • Business Owners
   • Shareholders
   • Managers
   • Trade union representative
   • Members of work councils
   • The group of stakeholders are closely connected to the organistaion and their needs are likely to have a strong influence on how the company is run
   • Needs
     • Shareholders
       • High profit levels, which will in turn allow high dividends
       • A positive corporate image and long-term growth in order to encourage share prices to rise
     • Employees
       • Job security
       • Good working conditions
       • High levels of pay
       • Promotional opportunites
       • To be consulted about changes that might affect them
     • Managers
       • High status
       • High pay
       • High bonuses
       • Job security
     • Trade unions
       • To be consulted and to take an active part in the decision making process in order to ensure policies and strategies benefit their members

2. External Stakeholders

   • Customers
   • Competitiors
   • Suppliers
   • Central and local government agencies and regulators
   • Pressure groups
   • Investors
   • Bankers
   • Creditors
   • Professional and trade assciations
   • Local Community
   • The Media
   • Diverse needs and varying levels of influence on an organisation's ability to meet its objectives
     • Stakeholders who have a contractual relationship with it (connected stakeholders)
   • Needs
     • Customers
       • High quality products at fair prices
       • Good service
       • Wide choice
     • Suppliers
       • Rrgualr orders
       • Fair prices
       • Prompt payment
       • Advance notification of any changes
     • Banks and Investors
       • Full and prompt repayment of loans plus interest
     • Local Community
       • Local employment opportunities
       • Socially responsible activities that benefit the local community
     • Environmental Pressure Groups
       • Business activity to have a netural or beneficial impact on the environment
     • Government
       • Central Government
         • Efficient use of resources
         • Provide employment and training
         • Comply with legislation on consumer protection, competition policy, employment, health and safety and environmental considerations
       • Local Government
         • Same as central government and make a positive contribution to the local community
         • Be consulted

3. Types

   • Shareholders
   • Employees
   • Customers
   • Suppliers
   • Financiers
   • Local Community
   • Government

4. Definition

   • Something to risk and therefore something to gain or lose as a result of an organisation's activity
   • Negative or positive impact on an organisation and its activities

5. Primary Stakeholders

   • Directly involved and affected, either positively or negatively, by an organisation's actions
   • The Power to influence and shape decisions (internal or external stakeholders)

6. Secondary Stakeholders

   • The intermediaries
   • Persons or organisations who are indirectly affected by an organisation's actions

7. Key Stakeholders

   • Primary or secondary stakeholders
   • Significant influence upon or importance within an organisation

8. Stakeholders Needs For Decisions

   • Each group of stakeholders have different needs in relation to an organisation and its activites
   • Small businesses
     • The needs and interests of shareholders may be a major influence on decision making
   • Failing to consider the needs of main stakeholders can have a serious negative consequences for an organisation

9. Overlap and Conflict Of Needs

   • Things that stakeholders look for from an organisation are called stakeholder needs or expectations or objectives
   • organisation's survival depends on the support on its stakeholders

10. Common or Overlapping Needs

    • All stakeholders of a business, except its direct competition have much to gain from it being a prosperous and successful business
    • Effect employees of that business, whose job security and livelihood are dependent on its success
    • The shareholders who have brought shares in the company stand to lose some or all of their money
    • The directors and managers may lose the privileges associated with their present position if the business fails and may be forced to look for alternative employment
    • The closure is also likely to be detrimental to the local economy