People or groups of people or organizations that affect business decision making or are affected by business decision making or have interest in the operations of a particular business
Stake
Interest in the business, not necessarily a financial stake or shares in the company
Internal stakeholders
Shareholders
Managers
Employees
CEO
Shareholders
Their main objective is maximizing shareholder value
Managers
Want to achieve objectives at their level in the shortest possible time with the lowest costs
Employees
Want good working conditions and maximum pay for minimum work
CEO
Wants to keep shareholders happy
External stakeholders
Government
Media
Local community
Suppliers
Government
Wants stable tax revenues, compliance with law, and voters support
Media
Wants publicity, regardless of whether the story is positive or negative
Local community
Cares about employment opportunities and no harm to the environment
Suppliers
Want constant orders and a good relationship with the company, with a short credit period
There is no agreement whether competitors are a stakeholder group or not
Stakeholders can be both internal and external at the same time, e.g. employees who live near the workplace
Minority shareholders with no decision-making power are considered external stakeholders, even though they are technically internal
Stakeholders and shareholders are not the same thing - shareholders are a type of stakeholder, but stakeholders include other groups beyond just shareholders
Stakeholder conflict
A clash of interests or objectives between different stakeholder groups
Power Interest Matrix
Helps prioritize stakeholder groups based on their power and interest
Four quadrants: low power/low interest (minimum effort), low power/high interest (keep informed), high power/low interest (keep satisfied), high power/high interest (maximum effort)
Stakeholder Analysis
Visually represents different stakeholder groups based on their proximity and influence on decision-making