A stakeholder is any person or organisation who has an interest in a business. Some stakeholders are powerful and they can influence how the business operates. But some stakeholders only have a little power and their views can be ignored. There are two types of stakeholders, internal and external.
Internal stakeholders are inside the firm.
The owners are the most important stakeholders. They make a profit if the business is successful and decide what happens to the business. In a limited company there are shareholders. Employees are interested in their job security and promotion prospects. They also want a decent wage and have pleasant working condition.
External stakeholders are outside the firm.
Customers want high quality products at low prices. Suppliers are who the firm buys raw materials from. The firm provides them with their income. They may face cash flow problems if they do not get paid quickly enough. The local community where the business is based will suffer if the firm causes noise and pollution. They may gain if the firm provides good jobs and sponsors local activities. The government will receive taxes when the firm makes profit.
Stakeholder Information Interested in
Customer A customer is a person or an organisation that buys a good or uses the service.
Customers are interested in the prize and quality of the product. Range of suppliers, the opening hours and facilities.
Employees Somebody who works within the business. Includes managers.
Employers are interested in good working conditions and their job security. Also the pay is very important to them.
Financiers Anybody who provides the business with money e.g. managers
Financiers are interested in profits, repayments on loans and the money that has been invested.
Government They will tax your profit. Acting by the rules.
Government is interested on legal issues as well as environmental issues and...