Stakeholders

1.4 Oxford textbook

Stakeholder

A person, group or other business that are directly impacted, either financially or physically, by the operations and functions of a business.

Internal stakeholder

Have a direct involvement in the company. The business has certain responsibilities towards these parties.

Includes employees, managers, shareholders.

Employee

Individuals hired by the business to carry out its operations. Interest in a business include job security, good salary, opportunities for growth and better working conditions.

Managers

Individuals belonging to the executive management and board of directions. Interests in the business includes increased financial performance, meeting strategic and tactical goals, satisfying shareholders and ensuring smooth functioning

Shareholders

People or organisations that invest in a business. Buying shares in hopes for a profit. Interests include growth of profits, unique long term vision, efficient workflow and liquidity.

Dividends

Profits made by the company that are divided among the shareholders.

External stakeholders

Not employed by the business and doesn't have any direct involvement. Includes customers, local community, government and suppliers.

Customers

Quality, quantity and price of product has a major impact on a buyer's decision, which becomes the business' priority to get buyers' attentions. Interests, services, quantity, quality, distribution and pricing.

Local community

Groups interested in a company's ethical practices/impact on the community. Interests include environmental practices and the creation of jobs.

Government

Collection of taxes and evidence that all relevant regulation and legislation requirements are being met. Interests include employment and taxes, appropriate business practices and protection of the environment.

Suppliers

Financial/provide materials to the company. Interests include profits and increased demand for their goods.

Creditors

Invest in a business or provide capital in the form of loans. Priority is to receive adequate returns on investment.

Competitors

Want to informed about the business in order to improve and adjust their own strategies.

Conflict between stakeholders

When stakeholders have goals that do not align with each other. It affects the performance and public image of the business.