Stakeholders
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What are stakeholders?
 People or organisations with a
special interest in a business.
 This is normally because they are
directly affected by the business and
how it operates – both now and in
the future.
2.8 Stakeholders
Types of stakeholders
Customers
Financiers
Suppliers
Pressure
groups
Stakeholders
The
government
Employees
and
managers
Owners
and
shareholders
The local
community
2.8 Stakeholders
Power and influence
 Some stakeholders are
powerful. They can
influence how the
business operates.
 Some stakeholders have
little power. The business
can virtually ignore their
views.
2.8 Stakeholders
Identify the powerful
Which three have the power?
 An individual employee in a large firm
 A bank which has lent a lot of money to a
small firm
 A supplier of a major product, eg Microsoft
 A small supplier to a large supermarket
 An important customer of a small firm
2.8 Stakeholders
Stakeholder interests 1
All stakeholders have different types of interests:
 Customers – price, quality, range of supplies,
opening hours, facilities, etc
 Employees – pay, working conditions,
job security
 Owners/shareholders – profit, share price,
dividends
 The local community – road building, pollution,
safety, house values, jobs
2.8 Stakeholders
Stakeholder interests 2
 Government – legal issues, environmental
issues, competition
 Pressure groups – interests of members
and those they represent
 Suppliers – price paid for their supplies,
further orders
 Financiers – profits, return on money
invested, repayments of loans
2.8 Stakeholders
Conflict and stakeholders
Stakeholders with different interests may be in
conflict, eg
 Local community against expansion of
business, employees want job security
 Shareholders want high dividends, managers
want to use profits for investment
 Suppliers want high prices for goods they
supply, customers want low selling prices
2.8 Stakeholders
Stakeholder summary
All stakeholders have an interest in a business.
 Different groups have different interests
 Interests may conflict
 Business will be most likely to respond to
the most powerful groups
2.8 Stakeholders