1.4 stakeholders

Stakeholder

An individual, group, or organization with a direct interest in and/or is affected by the activities and performance of a business.

Internal stakeholders

Individuals within a business who have a direct interest in, and are affected by, its activities and performance.

Employees

Internal stakeholders who are likely to have an interest in their organization, focusing on pay, working conditions, job security, and career progression.

Managers

Individuals who oversee daily operations of a business and prioritize profit maximization, job security, and long-term financial health.

Directors

Senior executives who guide business operations on behalf of shareholders, interested in similar areas as managers.

Shareholders

Individuals or organizations holding shares in a company, primarily interested in maximizing dividends and achieving capital gains.

External stakeholders

Individuals or organizations outside of the business but with a direct interest in, and are affected by, its activities and performance.

Customers

External stakeholders interested in value for money and quality of goods and services.

Suppliers

External stakeholders providing raw materials needed for production, interested in timely payments and good relationships with clients.

Financiers

Financial institutions and individuals providing finance to a firm, concerned with repayment ability and long-term relationships.

Pressure groups

Groups of individuals with a common interest seeking to influence an organization's behavior.

Competition

Rival businesses of an organization, focusing on innovation, competitive responses, and benchmarking performance.

Stakeholder conflict

The inability of an organization to meet all stakeholder objectives simultaneously, arising from differing interests among them.

Resolving conflict

Depends on the type of organization, its aims and objectives, and the influence of each stakeholder group.