business

• Stakeholder


  A person or group who's affected by a business
• Even small businesses may have lots of different stakeholders
• Different stakeholders


  • They have different ideas of what makes a firm successful and what its objectives should be
• Examples of stakeholders


  • Shareholders
  • Employees
  • Suppliers
  • Local community
  • Government
  • Customers
• Shareholders


  They make a profit if the business is successful and decide what happens to the business
• Shareholders' interests


  High dividends, high share price
• Employees' interests


  Job security, promotion prospects, decent wage, good working conditions
• Suppliers' interests


  More business and higher income if the firm is profitable and grows
• Local community's interests


  Suffer if the firm causes pollution, gain if the firm provides good jobs and sponsors local activities
• Government's interests


  Receive more tax if the firm makes a profit
• Customers' interests


  High quality products at low prices
• Stakeholders influence objectives to varying degrees
• Owners


  • They make the decisions in a firm, so they're the most influential stakeholders
• Owners need to consider the interests of other stakeholders when setting objectives
• Stakeholders often have conflicting opinions about the firm's objectives
• A firm may decide to ignore the opinions of some stakeholders, but they'll need to take others into account if they want to survive
• Restaurant building a new outlet

  • Owners want it opened as soon as possible to start making income, but this would disturb local residents
  • Company wants to keep the residents happy