Stakeholders

• A stakeholder can be an individual, a group of people, another organization or business, and is anyone who has an interest in the activities and decisions taken by a business.
• Stakeholders may work for the business as an employee or a manager, have a transactional relationship such as a customer, or be external stakeholders like the government and society at large.
• Stakeholders have different interests in the business activity, for example, shareholders are interested in the business's financial performance, whether it can pay out a dividend, and if the share price is rising.
• Stakeholder mapping is a strategy to manage the difference between stakeholder power.
• Stakeholder mapping is a simple concept, which states that a business should focus more on stakeholders who have high power and high interest.
• The theory of stakeholder mapping suggests that a business should spend more time responding to stakeholders who have high power and high interest.
• Stakeholder interest can come into conflict, which raises an issue with the business on how to deal with stakeholder conflict.
• Introduction of greater automation is likely to be supported by shareholders if it leads to greater efficiency and profits, but it is possibly unlikely and more likely to be opposed by employees particularly if it results in employees losing their jobs.
• Society is a stakeholder in businesses as they have a wider responsibility to their societal stakeholders, including complying with regulations and laws, and acting ethically and socially responsible.
• Most shareholders in larger businesses are not involved in the day-to-day running of the businesses, a divorce between ownership and control.
• Customers and suppliers may find that greater automation results in more reliable delivery and greater availability of the product, however, a local community may not welcome the additional noise.
• Stakeholders have different interests in different parts of the business, and sometimes the stakeholder interest can create a conflict, a business decision can be supported by one stakeholder group but opposed by a different stakeholder group.
• Suppliers are a stakeholder in the business they are selling to, they want to make sure they will be paid for the goods and services they provide, and they also have an interest in continuing to supply the business as it is one of their customers.
• Customers are a stakeholder in a business as they have an interest in getting value for money, receiving a good quality customer service, and getting a product of the right quality.
• What do employees expect from the business?

  • Good working conditions
  • Job security
  • Promotional aspects
• Employees are a stakeholder in the business because they work there and contribute to its success or failure.
• Shareholders expect a satisfactory return on investment from the business
• Creditors expect that payments are on time and fulfilled satisfactorily from the business
• What does the local community expect from a business?

  • Job opportunities
  • Consideration (noise, etc.)
  • Community involvement
• What does the government expect from a business?

  • Taxes
  • Employment
  • Local or regional investment
• What are the external stakeholders?

  • Suppliers
  • Local community
  • Government
  • Creditors
  • Customers