1.4 Stakeholders

Stakeholder – a person, group, or organization that can affect or be affected by an organization’s actions, objectives, and policies.

Internal stakeholders:

Employees

Shareholders

Managers

External stakeholders:

Suppliers

Customers

Government

Banks and other creditors

Pressure group

competitors

Stakeholder conflict - Arises when the needs of some stakeholder groups compromise the expectations of others.

Stakeholder mapping -  A management tool used to determine the key stakeholders of an organization based on the varying degrees of power and interest.

  1. Low interest and low power – businesses can devote little energy and attention to satisfying their interest

  2. High interest and low power – making this group feel included is important

  3. Low interest and high power – must be kept satisfied as they have the power to influence other groups. They must be made to feel important

  4. High interest and high power – not only need to be communicated but also consulted before major decisions are made