Stakeholders are people with an interest in the business and can either affect or be affected by the actions of a business. This can apply to one person or a group of people
Describe the stakeholder- owner
The owners of a business are those who invested capital in it. The owners have the most at stake as their lively hood depends on the business. The reward the owners get is profit but they also have the risk of having to bear any loss incurred by the business
Describe the stakeholder- shareholder
They are those people who invest money in a business which is a limited company. Their investment is in the form of shares that makes them part owners of the company. They do not take part in the management although they are entitles to attend the annual general meeting and vote for the board of directors
Describe the stakeholder- directors
They are appointed for the overall running of the company. They make policy decisions and have ultimate power in the company. They receive reward in the form of a salary.
Describe the stakeholder- Managers
They are the second layer of authority below the directors and they have responsibility for the day to day running of the business and they oversee the work being done in the company and workers and supervisors report to them. They are rewarded with a salary
Describe the stakeholder- Producers
They are the producers of raw materials to a business. This can lead to increased goods being ordered is the business does well and it means they can pay their debts promptly and in full. They are rewarded by high levels of sales values which adds to the profits of their own business
