1.4 Stakeholders

Stakeholders

A person or organization that affects or is affected by a business. Stakeholders are often classified as internal versus external, market versus non-market, or primary versus secondary.

Internal Stakeholder

A stakeholder who is internal to the business, such as an employee, a manager, or shareholders.

External Stakeholder

A stakeholder who is external to the business or organization, such as suppliers, customers, government, media, or the community.

Internal Stakeholders Interests

• Shareholders: Focus on the returns on their investment.

• CEO: Focuses on coordinating the Business strategy and delivering profits and returns to shareholders.

• Senior Manager: Focus on the strategic objectives for their functional areas.

• Middle Manager: Focus on the tactical objectives for their functional areas.

• Foremen and supervisors: Focus on organizing the tactical objectives and formulating operational objectives

External Stakeholders Interests

• Government: Focuses on how the business operates in the business environment.

• Suppliers: Focus on maintaining a stable relationship.

• Customers and consumers: Focus on the best product that meets their needs or wants.

• Local Community: Focus on the impact of the business in the local area.

• Financiers: Focus on returns on their investments.

• Pressure groups: Focus on how the business has impact on their area of concern.

• The media focuses on the impact of the business in terms of news stories.