Stakeholders

Internal Stakeholders Members of the organization

Employees Employees most likely would like to increase their pay, benefits, working conditions, job security and opportunities for advancement.

Managers and Directors Directly oversee the daily operations for the business. Would like to see their own benefits grow by maximizing profit.

Shareholders Limited liability companies are owned by shareholders. They have 2 main objectives. 1. To maximize dividends. 2. To achieve capital gains. (Growth of the value of the shares)

External Stakeholders Do not form part of the business but have a direct interest or involvement in the organization.

Customers Customer care is very important in all business operations. It is vital that businesses pay attention to the needs of their customers, such as greater choice of better quality products at competitive prices.

Suppliers Suppliers provide businesses with raw materials, parts and finished goods needed for production. They can also provide services, such as maintenance or technological support.

Pressure Groups Individuals with a common interest who seek to place demands on organizations to act in a particular way or to influence change in their behavior.

Competitors Rival businesses of the organization. Businesses need competition because rivalry can lead to innovation. To remain competitive, businesses need to be aware of and respond to the practices of their rivals. In order to see where the business is by comparing key indicators such as sales, profit and margin.

Government The government has significant influence as it creates laws that affect businesses. Sometimes has financial stakes in businesses. Ensures that businesses act in the public interest.

Stakeholder Conflict Different stakeholder groups have different interests thereby leading to conflict. Businesses can not meet the needs of all stakeholders. Some stakeholders have more than one role in an organization.

Leaders need to look at 3 key issues 1.The type of organization – partnerships might strive for profit where a charity has altruistic goals. 2.The aims and objectives of a business. 3.The source and degree of power of each stakeholder group.

Stakeholder Mapping