Stakeholders

What are stakeholders?

People or organisations with a special interest in a business.

This is normally because they are directly affected by the business and how it operates – both now and in the future.

Wildern School Stakeholders

Types of stakeholders

The government

The local community

Owners and

shareholders

Employees and

managers

Customers

Financiers

Pressure groups

Suppliers Stakeholders

Power and influence

Some stakeholders are powerful. They can influence how the business operates.

Some stakeholders have little power. The business can virtually ignore their views.

Identify the powerful

Which three have the power? An individual employee in a large firm A bank which has lent a lot of money to a

small firm A supplier of a major product, eg Microsoft A small supplier to a large supermarket An important customer of a small firm

Stakeholder interests 1

All stakeholders have different types of interests: Customers – price, quality, range of supplies,

opening hours, facilities, etc Employees – pay, working conditions,

job security Owners/shareholders – profit, share price,

dividends The local community – road building, pollution,

safety, house values, jobs

Stakeholder interests 2

Government – legal issues, environmental issues, competition

Pressure groups – interests of members and those they represent

Suppliers – price paid for their supplies, further orders

Financiers – profits, return on money invested, repayments of loans

Conflict and stakeholders

Local community against expansion of business, employees want job security

Shareholders want high dividends, managers want to use profits for investment

Suppliers want high prices for goods they supply, customers want low selling prices

Stakeholders with different interests may be in conflict, eg

Stakeholders Video Clip

Require more information….. Try this site;

http://www.teachmebusiness.co.uk/newstakeholders.html

Stakeholder summary

All stakeholders have an interest in a business. Different groups have different interests Interests may conflict Business will be most likely to respond to

the most powerful groups