stakeholders and types of organization

stakeholder

an individual or group that affects or is affected by an organization

internal stakeholder

an individual or a group that affects or is affected by, an organization and is directly involved in the organization (owners, managers, employees)

external stakeholder

an individual or a group that affects, or is affected by an organization, but who is not directly involved in the organization (suppliers, bank, media)

 

manager

individuals who run the organization. They are responsible both for setting aims and objectives and for making sure these aims and objectives are met. in order to succeed they must make a comfortable environment for employees to work together and be able to meet those objectives.

employees

individuals who work for the company. they are motivated by personal interests in competition, benefits, work security, and working conditions.

sharholders

They invest in businesses to receive a return on their investment. Their primary concern is profit for the company. They are generally not involved in the day-to-day running of a business. However, they appoint a board of directors, which chooses a CEO to run the company in the shareholders’ interest.

customers

individuals and other businesses that purchase the products of the organization/ they demand good service and quality products that are safe and are sold for reasonable prices

suppliers

individuals or businesses that sell needed goods and services to the organization. They want to pay prices that are fair and reasonable for the inputs

stakeholder mapping

includes organizing the various stakeholders of the business into a matrix, based on their degree of power and their level of interest in the business

key stakeholders

The stakeholder groups with a high degree of power and interest

sole trader

-       A commercial business owned by a single person. They can employ as many people as required but remains the only owner of the business.

-       It is run as an unincorporated business, there is no legal separation between the owner and the business itself.

-       A sole trader has unlimited liability and is responsible for any debt of the business which may be paid from their personal assets

partnership

-       A commercial business organization owned by two or more people. In an ordinary partnership there are usually between 2 to 20 owners

-       At least one partner will have unlimited liability, although usual for all the partners to share responsibility for any losses made by the partnership

cooperative

-       for-profit social enterprises owned and run by their members, such as employees, managers, and customers.

companies and corporations

-       A commercial business with limited liability and owned by their shareholders. Any profit must be distributed among shareholders

-       As incorporated business, there is a divorce of ownership and control, so shareholders have the benefit of limited liability

private limited company

-       Smaller businesses than public limited companies

-       Shares can only be transferred (bought or sold) privately, and all shareholders must agree on the sale/transfer

-       Typically, shares are owned by family, relatives, and close friends

-       The shares cannot be advertised for sale or sold via stock exchange

public limited companie

-       Share in public limited company can be bought by and sold to any member of the public or institution

for profit social enterprice

-       an organization that uses commercial business practices to improve communities, the environment and human well-being rather than focusing on profits for external shareholders

non profit social enterprice

-       can earn a surplus from selling goods and services but reinvest this back into the business or local community

NGO

-       a type of non-profit social enterprise that is neither part of government nor a traditional for-profit business but run by voluntary groups