Stakeholder : Stakeholder Definitions of a stakeholder: : Definitions of a stakeholder: An individual or group with an interest in an organization.
Any individual or group who can affect or are affected by the achievement of a firm’s objective.
Groups/individuals that have an interest in the well being of the company and/or are affected by the goals, operations, activities of the organization. Stakeholders can be classified as: : Stakeholders can be classified as: Internal stakeholders (e.g. employees, managers)
Connected stakeholders (e.g. shareholders, customers, suppliers, financiers)
External (e.g. government, the community, pressure groups) Difference between stake holders and shareholders : Difference between stake holders and shareholders Shareholders are individuals who own stock (also called shares) in a company in hopes of making a profit. If the company does well, they stand to make money based on how many shares they bought (own). However, if the company does bad, then the shareholder stands to lose his/her investment (money). Stakeholders are individuals who have an interest in an company, or any organization and are affected by what happens within the institution based on rules. policies, regulations, etc. For example, the stakeholders of a college are the students, staff, faculty, vendors, etc. They may be directly affected (primary stakeholders) by what the college does or how it operates. A company's stakeholders are its customers, employees, suppliers, etc. The main stakeholders in any business are: : The main stakeholders in any business are: Shareholders
Competitor Shareholders look for: : Shareholders look for: High profits
Long term growth
Prospect of capital gain
A say in the business
A positive corporate image
Preferential treatment as customers Employees look for: : Employees look for: High pay
Good working conditions
Health and safety
Training opportunities Customers look for: : Customers look for: Low prices
Value for money
High quality products
Certain and regular supply
Choice of goods i.e. variety
Clear and accurate information Suppliers look for: : Suppliers look for: A long term relationship with the firm
Large size and high value of contracts
Frequent and regular orders
Growth of the firm leading to more orders Creditors look for: : Creditors look for: Prompt payment
Payment of interest on outstanding debt
Repayment at agreed date
Credit worthiness of the organisation
Sufficient positive cash flow to meet obligations The community looks for: : The community looks for: Employment prospects
Safeguarding the environment
Acceptance of social responsibility
To benefit from employment the business creates.To be free from environmental disadvantages the firm might create. Government looks for: : Government looks for: Compliance with laws and regulations
Efficient use of resources
Contribution to the national economy
Payment of taxes To receive tax revenues from profitable firms.
To direct the operations of the business for the benefit of the community/nation.
To control business operations and performance to ensure it remains within national laws.
To assist businesses in accordance with national and local policies. Competitors look for: : Competitors look for: To compete by all lawful means.
To differentiate its products from those of other businesses.
To compare and contrast performances with other businesses. Conflicts of Shareholders : Conflicts of Shareholders