- An individual or group with an interest in an organisation.
- Any individual or group who can affect or are affected by the achievement of a firm’s objective.
- Groups/individuals that have an interest in the well being of the company and/or are affected by the goals, operations, activities of the organisation.
Stakeholders can be classified as:
- Internal stakeholders (e.g. employees, managers)
- Connected stakeholders (e.g. shareholders, customers, suppliers, financiers)
- External (e.g. government, the community, pressure groups)
The main stakeholders in any business are:
- Shareholders
- Employees
- Customers
- Suppliers
- Creditors
- Society
- The government
- Competitor
Shareholders look for:
- High profits
- High dividend
- Long term growth
- Prospect of capital gain
- A say in the business
- A positive corporate image
- Preferential treatment as customers
Employees look for:
- High pay
- Job security
- Good working conditions
- Fair treatment
- Fringe benefits
- Health and safety
- Promotion prospects
- Training opportunities
Customers look for:
- Low prices
- Value for money
- High quality products
- Good service
- Innovation
- Certain and regular supply
- Choice of goods i.e. variety
- Clear and accurate information
Suppliers look for:
- A long term relationship with the firm
- Large size and high value of contracts
- Frequent and regular orders
- Prompt payment
- Fair prices
- Growth of the firm leading to more orders
Creditors look for:
- Prompt payment
- Payment of interest on outstanding debt
- Repayment at agreed date
- Credit worthiness of the organisation
- Sufficient positive cash flow to meet obligations
The community looks for:
- Employment prospects
- Safeguarding the environment
- Acceptance of social responsibility
- Ethical behaviour
Government looks for:
- Compliance with laws and regulations
- Efficient use of resources
- Employment
- Contribution to the national economy
- Payment of taxes
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