1.4 Stakeholders

stakeholders

individuals, orgs, or groups with an interest in the actions and outcomes of a specific organization. all directly affected by the performance of the org and have diff degrees of influence.

internal stakeholders

individuals/groups part of the org

employees

workers within an org

managers

people responsible for overseeing certain functions, operations, or departments within an org

3 broad levels of management

1. senior management (whole org)

2. middle management (departments)

3. junior management (day-to-day)

directors/executives

group of senior managers legally responsible for the overall running of a company on behalf of shareholders

types of directors

executive directors (work full-time at the org)

non-executive directors (do not work at the org but are consultants, advise board on corp strategy)

shareholders/stockholders

people or other orgs that buy shares in the company

external stakeholders

not part of the org but have a direct interest in its decisions and performance

customers

firm’s clients who pay for goods and/or services of the business

competitors

org’s rival businesses competing in the same industry

suppliers

orgs that provide goods and support services for other orgs

financiers/lenders

financial backers that provide finance for businesses (banks, investors, insurance companies)

labor/trade unions

org that aims to protect interest of its worker members

worker becomes a member by paying a subscription fee to help pay for administrative and legal expenses

local community

gen public and local businesses that have a direct interest in the activities of the business

pressure groups

orgs consisting of like-minded individuals who come together for a common cause/concern

set up as legal business entities to pursue these specialist interests

strive to influence gov and public opinion to create the desired social change

government

external stakeholder of all orgs operating within its jurisdiction

stakeholder conflict

mutually exclusive and incompatible interests of diff stakeholder groups

compromise

involves stakeholders deliberately making considerations for other stakeholders

conciliation

third party helps support both parties to better understand each other’s interests and needs

arbitration

service used to resolve stakeholder conflict by considering the perspectives of all parties involved

all parties in conflict must accept the decision of the arbitrator

worker participation/industrial democracy

involves employees having a direct say in how things are done in the workplace

share ownership schemes

gives employees and management opportunity to buy shares

profit related pay

pay of employees is linked to profit of company

public relations

used to communicate pos news about the org with the press and local community