1. Stakeholders

2. Stakeholders Stakeholders are groups or individuals with an interest
in a business. Stakeholders may affect or be affected
by the decisions of an organisation. Examples of
stakeholders include:
Owners/shareholders
Employees
Customers
Local community

3. Internal stakeholders

4. Internal stakeholders
Internal stakeholders are those that are considered
to be part of an organisation.
The main internal stakeholders are:
Shareholders/owners
Employees

5. Shareholders Shareholders: own a part of a business
do not get involved in the day-to-day running of the business
have a right to vote at the company’s AGM
receive a share of the profits – this is called a dividend

6. Shareholder interests
Each stakeholder group will have its own expectations
of the business.
Shareholders are likely to have an interest in:
Increased profits and hence dividends through such things as:
Growth
Enhanced reputation
Greater efficiency

7. Employees Employees: are paid by a business to carry out given roles
are one of a company’s most important assets
help a business achieve its objectives
need a range of skills relevant to their job roles e.g. teamwork and problem solving

8. Employee interests Employees are likely to expect: fair pay
decent working conditions
job security
access to training for additional qualifications

9. Manager interests
In addition to the usual employee interests, managers may expect to be able to make their own decisions and have the opportunity of promotion

10. External Stakeholders

11. External stakeholders
External stakeholders are outside an organisation.
The main external stakeholders are:
Customers
Government
Suppliers
The local community

12. Customer expectations
Customers are likely to expect such things as:
a product range that meets their needs
value for money
good quality products and customer service
a ready supply of goods and services
And possibly:
ecologically sound/sustainable products

13. Government interests
The government has an interest in businesses because:
it receives taxes from business profits, employee incomes and customer purchases
businesses provide jobs and therefore employment levels and benefits payments are affected
the economy is dependent on the operations of business
it has a range of legislation and regulations that businesses must comply with

14. Supplier expectations
Suppliers may provide a range of services to
businesses, as well as raw materials and finished
goods.
Suppliers may expect:
to be paid in a timely fashion
to receive regular orders

15. Local community The local community may have expectations about a
company regarding:
the availability of jobs
the level of pollution and congestion created
the support provided by a business regarding community projects and concerns

16. Business expectations of stakeholders
Different stakeholders have their own interests and expectations of a firm, however, the business will also have expectations of the stakeholders e.g. suppliers may be expected to comply with ethical and environmental guidelines set down by the business.

17. Stakeholder conflict
Conflict between the needs of stakeholder groups may
occur. For example:
Paying workers higher wages could result in lower dividends to shareholders
The government may want to increase VAT on the products sold by a business, which may lead to higher prices for customers