Stakeholders

• Stakeholders want a business to do well because they will benefit from its success in some way
• Anyone who is affected by the success or failure of a business is known as a stakeholder
• Owners have an interest in a business doing well so they make a profit or receive high dividends
• Owners can influence how a business operates by investing or withdrawing equity into the business and by changing management
• Managers have an interest in a business doing well so they can get promoted, win bonuses and have job security
• Managers can influence how a business operates by hiring and firing , creating company policy’s and by making long term or day to day decisions
• Employees have an interest in a business doing well because they want job security , higher pay and improved working conditions
• Employees can influence a business by increasing or decreasing productivity , providing good or bad customer service and in extreme cases going on strike
• Customers have an interest in a business doing well as they want quality products and services , want low prices and want value for money
• Customers can influence a business by deciding to purchase a product or use a service , and can affect reputation by word of mouth
• Banks have an interest in business doing well do they can ensure the business can pay their loans in full and on time
• Banks can influence a business by permitting or denying loan requests , changing interest rates on loans and changing repayment lengths
• Governments have interest in a business doing well as they want firms to pay corporation tax , they want jobs and wealth created for the population and they want businesses to provide goods and servives for the population
• Governments can influence a business by raising or lowering tax , introducing or changing laws and offering grants to get firms to relocate to depressed areas
• Suppliers want a business to do well so they get regular orders from their customers and they want prompt payment
• Suppliers can influence a business by raising or lowering prices of goods , changing delivery times and by increasing or decreasing the quality of their goods
• The local community want a business to do well so they bring jobs to the area , as they want a good safe place to live and they want good transport and communication links
• Local communities can influence a business by protesting and petitioning if they’re unhappy at a businesses conduct