Stakeholders

• Every organization involves a system of primary stakeholder groups with whom it establishes and manages relationships.
• Stakeholders are the individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.
• Claims on a firm’s performance are enforced through the stakeholders’ ability to withhold participation essential to the organization’s survival, competitiveness, and profitability.
• Stakeholders continue to support an organization when its performance meets or exceeds their expectations.
• firms that effectively manage stakeholder relationships outperform those that do not
• Stakeholder relationships and the firm’s overall reputation among stakeholders can therefore be a source of competitive advantage.
• Although organizations have dependency relationships with their stakeholders, they are not equally dependent on all stakeholders at all times.
• not every stakeholder has the same level of influence (e.g., suppliers from customers)
• The more critical and valued a stakeholder’s participation, the greater a firm’s dependency on it.
• Greater dependence gives the stakeholder more potential influence over a firm’s commitments, decisions, and actions.
• Managers must find ways to either accommodate or insulate the organization from the demands of stakeholders controlling critical resources.
• people who are affected by a firm's performance and who have claims on its performance

  stakeholders
• capital market stakeholders

  • shareholders
  • major suppliers of capital (banks)
• product market stakeholders

  • primary customers
  • suppliers
  • host communities
  • unions
• organizational stakeholders

  • employees
  • managers
  • non-managers