internal and external stakeholders
What are stakeholders?
Stakeholders are people or groups of people who can be affected by, and therefore have an interest in, any action by an organisation. The stakeholder concept is the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.
Who are the stakeholders?
INTERNAL STAKEHOLDERS
There are three main internal stakeholders, each with their own set of interests in the business’s activities. They include:
● employees – employment security, wage levels, conditions of employment, participation in the business
● managers – employment security, salary and benefits offered, responsibilities given
● shareholders – annual dividends, share price, security of investment.
EXTERNAL STAKEHOLDERS
The external stakeholders and their interests include:
● suppliers – speed of payment, level and regularity of orders, fairness of treatment
● customers – value for money, product quality, service levels
● government – jobs created, taxes paid, value of output produced, impact on wider society
● special interest groups such as:
- banks and other creditors – security of their loans and the ability of the business to repay them
- pressure groups that want to change a business’s policy towards pollution or testing of chemicals on animals
- community action groups concerned about the local impact of business activity
● competitors – fairness of competitive practices, strategic plans of the business.
Stakeholder conflict - potential conflicts
Stakeholders are people or groups of people who can be affected by, and therefore have an interest in, any action by an organisation. The stakeholder concept is the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.
Who are the stakeholders?
INTERNAL STAKEHOLDERS
There are three main internal stakeholders, each with their own set of interests in the business’s activities. They include:
● employees – employment security, wage levels, conditions of employment, participation in the business
● managers – employment security, salary and benefits offered, responsibilities given
● shareholders – annual dividends, share price, security of investment.
EXTERNAL STAKEHOLDERS
The external stakeholders and their interests include:
● suppliers – speed of payment, level and regularity of orders, fairness of treatment
● customers – value for money, product quality, service levels
● government – jobs created, taxes paid, value of output produced, impact on wider society
● special interest groups such as:
- banks and other creditors – security of their loans and the ability of the business to repay them
- pressure groups that want to change a business’s policy towards pollution or testing of chemicals on animals
- community action groups concerned about the local impact of business activity
● competitors – fairness of competitive practices, strategic plans of the business.
Stakeholder conflict - potential conflicts