Stakeholders and Shareholders Mapping

What is a stakeholder?

They are any individual or organisation that has a vested interest in the activities and decision-making of a business

What is the role of stakeholders?

• Have an interest in the business- but do not own it

• May work for (employees) or otherwise transact with the business

What do shareholders do?

• Own a business

• May also work in the business

• Benefit directly from increases in the value of the business

What examples of business stakeholders are there?

• Owners

• Society

• Creditors

• Suppliers

• Government

• Customers

• Managers

• Employees

What are shareholders and owners mainly interested in?

• Return on investment and profits+dividends

• Success and growth of the business

• Proper running of the business

What are managers and employees mainly interested in?

• Rewards, including basic pay and other financial incentives

• Job security and working conditions

• Promotion opportunities + job satisfaction & status- motivation, roles and responsibilities

What are customers mainly interested in?

• Value for money

• Product quality & Customer service

What interests do suppliers have in a business?

• Continued, profitable trade with business

• Financial stability- can the business pay its bills?

What interests do Banks have in a business?

• Can the business repay amounts loaned or invested?

• Profitability and cash flows of the business

• Growth in profits and value of the business

What interests do governments have in a business?

• The correct collection and payment of taxes (e.g. VAT)

• Helping the business to grow- creating jobs

• Compliance with business legislation

What interests do society have in a business?

• The success of the business- particularly creating and retaining jobs

• Compliance with local laws and regulations (e.g. noise, pollution)

What potential conflicts may occur between stakeholders?

• Cutting jobs or closing business units will be supported by shareholders and banks but opposed by Employees and the local community

• Adding extra shifts to increase capacity will be supported by Management, Customers and suppliers but opposed by the local community

• Introducing greater automation will be supported by Customers and shareholders but opposed by Employees

• Increasing selling prices will be supported by the shareholders and management but opposed by customers

What is stakeholder power?

Some stakeholders have more power over a business than others