What is a Stakeholder?
A stakeholder is any individual or organisation that has a vested interest in the activities and decision-making of a business
What are the features of a stakeholder?
Have an interest in the business- but do not own it
May work for (employees) or otherwise transact with the business
What are the features of shareholders?
Own a business
May also work in the business
Benefit directly from increases in the value of the business
What are the internal stakeholder?
They are closely connected to the organisation and their needs are likely to have a strong influence on an organisation
What are the examples of internal stakeholders?
Owners
Shareholders
Employees
Managers
Trade union representatives
Members of work councils
What are external stakeholder?
They have diverse needs and varying levels of influence on an organisation’s ability to. meet its objectives
Even though they are external to the organisation they still have a contractual relationship
They are sometimes known as ‘connected stakeholders’
What are the examples of external stakeholders?
Customers
Competitors
Suppliers
Central and local government agencies and regulators
Pressure groups
Investors
Bankers
Creditors
Professional and Trade associations
The local community
The media
What are primary stakeholders?
Those who are directly involved and affected, either positively or negatively, by an organisation’s actions
These people will have the power to influence and shape decisions
What are secondary stakeholders?
They are the ‘intermediaries’ so the persons or organisations who are indirectly affected by an organisation’s actions
These people will have the power to influence and shape decisions
What are key stakeholders?
They can either be primary or secondary stakeholders but will have significant influence upon, or within, an organisation