unit 1 business environment LO5

stakeholder definition

people or groups who have an interest in the business as they may be affected by business activity

internal stakeholder and examples

people or groups who are directly involved in the daily activities of a business eg owners, employees

external stakeholders and examples

people or groups who are not involved in the daily activities of a business, but are affected by them eg shareholders, government, pressure groups

‘keep satisfied’ stakeholders

high levels of power but low levels of interest in activities of business

‘manage closely’ stakeholders

high levels of power and interest in the activities of a business

‘moniter’ stakeholders

little interest and little power in the activities of a business

‘keep informed’ stakeholders

high levels of interest but low levels of power

3 benefits of meeting stakeholder needs

• improved relationships

• access to a wider network of contacts

• improved reputation

consequences of ignoring stakeholders

• protests

• boycotts

• negative publicity