1. Stakeholders
The stakeholders of a business are those individuals or groups who are affected by the activities of the business and so have an interest in its success or failure.

2. Owners/Shareholders They want the company to succeed:
To make more money from the business
Interested in the company to making a profit
Want a good dividend
Want their shares to increase in price

3. Managers They want the company to succeed Better chance of promotion
Successful company may reward them by paying them higher salaries
Giving them a bonus
Better fringe benefits
If company fails they could lose their job

4. Workers They want the company to succeed A failing company will
More likely to get better pay
Chance of promotion
Better facilities
A failing company will
Threaten their jobs
Freeze their pay
Possibly cut their wages

5. Suppliers They want the company to succeed Failing company
More orders for them
More success for their business
Failing company
Falling orders for them
Less profit
Job losses

6. Customers
They have a stake in any business which they buy goods and services from
They want low prices
Best quality available
Good service
Innovative products

7. The Government When a business succeeds If a business fails
Businesses pay taxes – the more profit the business makes the more tax it pays
If a business fails
Workers become unemployed
The Government will have to pay them unemployment benefit

8. The Local Area Sometimes this will be beneficial
Creates jobs for people living locally
Business might buy from local suppliers
Provide a service to local people or businesses
At other times it might not be
The local area will suffer if a business fails and is a large employer
It could pollute the local environment

9. Conflicts of interest

10. Conflicts of Interest Shareholders and suppliers
Shareholders want to get good dividends they might push the company into getting cheaper suppliers

11. Conflicts of Interest Shareholders and workers
Shareholders want a good dividend, they might object to the workers getting a pay rise - it might reduce company profit.

12. Conflicts of Interest Workers and the local area
Factory might wish to expand, provide more jobs - local area might object because it sees the business as a polluter.
Published by
2003 © J Grundy