1. Business Decisions and Stakeholders

2. What is a stakeholder? A stakeholder is anyone who has a vested interest in the activities and decision making of a business.

3. Shareholders or business owners Managers & employees Customers Suppliers Banks and other finance providers Government Local community Other external groups (e.g. pressure groups) Competitors The media Examples of stakeholders

4. What stakeholders are interested in StakeholderMainly interested in… Shareholders / OwnersReturn on investment + profits and dividends Success and growth of the business Proper running of the business Managers & EmployeesRewards, including basic pay and other financial incentives Job security & working conditions (e.g. holidays) Promotion opportunities + job satisfaction & status – motivation, roles and responsibilities CustomersValue for money Product quality & customer service SuppliersContinued, profitable trade with the business Financial stability – can the business pay its bills? Banks & other finance providers Can the business repay amounts loaned or invested? Profitability and cash flows of the business Growth in profits and value of the business GovernmentThe correct collection and payment of taxes (e.g. VAT, Income Tax) Helping the business to grow – creating jobs Compliance with business legislation Local communitySuccess of the business – particularly creating and retaining jobs Compliance with local laws and regulations (e.g. noise, pollution)

5. Potential conflicts between stakeholders Business DecisionSupported By?Opposed By? Cut jobs to reduce costsShareholders Banks Employees Local community Add extra shifts to increase factory capacity Management Customers & suppliers Local community Introduce new machinery to replace manual work Customers Shareholders Employees Increase selling prices by 10% to improve profit margins Shareholders Management Customers

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