Stakeholders Unit 3 OC1

‘Stakeholders’ refers to the people and groups that interact in some way with the organisation and have a vested interest in its activities. They are expected to practise ethical management and do the ‘right’ thing in the interests of all stakeholders. Many enterprises are now extremely sensitive to public opinion and strive to be recognised as being ‘good corporate citizens’. Organisations recognise that they increase their chances of success when they pursue goals that align with the interests and expectations of all stakeholders. Some of an organisation's main stakeholders are its shareholders, its management, the unions, its employees, customers and suppliers, and the members of the wider community

Who are stakeholders? Shareholders – partial owners: want the organisation to be profitable (paid dividends) Management – responsible for running a profitable/successful organisation; act in an ethically and socially responsible manner; aim to satisfy as many stakeholder expectations as possible Unions – represent employees and attempt to negotiate favourable pay and conditions for employees Employees – key to the success of any organisation and should be valued – payed fairly, treated well, appropriate training, treated ethically. Happy employees = more effort thus higher productivity Customers – expect quality products at reasonable prices; also expect organisations to behave in an ethical and socially responsible manner Suppliers – provide materials Members of the community – socially responsible and ethical behaviour

Conflicts Stakeholders place competing demands on an organisation Management must constantly assess the actions of the organisation and attempt to satisfy as many stakeholder expectations as possible while still acting in a responsible manner TRIPLE BOTTOM LINE – economic, social and environmental performance; where stakeholder value increases; understanding that reconciling conflicting interests and increasing stakeholder value ensures long term growth and survival.