1. Unit 1.4
Stakeholders

2. By the end of 1.4 you should be able to . . .
Outline the interests of internal stakeholders
Outline the interests of external stakeholders
Discuss possible areas of mutual benefit and conflict between stakeholders’ interests

3. Stakeholders Who are they? Can be Internal and External
Any individual or group that has a direct interest in the performance of the business.
The actions of the business will affect them directly
They have a “stake” or interest in the business
Sometime the stake is financial
Employees, shareholders, lenders, suppliers
Other time it is less direct
Community members, etc.
Can be Internal and External

4. Stakeholders Internal External Grey areas can exist
Individuals or groups that work within the business
External
Individuals or groups outside the business
Grey areas can exist
Employees also live in the community
Employees are voters, and as such are external stakeholders
Consultants are external, but when hired have an internal position
Small shareholders own a stake, but don’t have the ability to influence a company

5. Interests of Internal Stakeholders
Shareholders
CEO or managing director
Senior Managers
Middle Managers
Foremen and Supervisors
Employees

6. Interests of External Stakeholders
Government – at all levels
Customers and consumers
People in the local community
Financiers
Pressure Groups
The Media
NOTE – competitors are not considered stakeholders

7. Areas of Mutual Benefit and Conflict
Each stakeholder in a business has a different focus;
Differences of opinion often exist
Situation – Pay raise for employees
Consider the conflicting views detailed on page 57
Coordinating the interests of stakeholders is easier in a smaller business

8. Stakeholder Analysis
Looks at comparative closeness in the decision- making process
Government
Employees
Media
Pressure Groups
Owners
Managers
Suppliers
Financiers
Consumers
Local Community

9. Example from WSJ (Wall St. Journal)
Middle Column – 3rd full paragraph!!

10. Stakeholder Mapping Power-interest Model Level of Interest Low High
Group A – minimal effort
Group B – Keep informed
Group C – Keep Satisfied
Group D – Key Players
Degree of Power
Group A Group B Group C Group D
Least Important to business
Most important to business