Topic Summaries

A stakeholder is anyone who has an interest in the activities and performance of a business. Different stakeholder groups often have different (and sometimes conflicting) objectives.

• Key stakeholders and their primary objectives are:
  • Shareholders (owners): want high profits and return on investment (dividends).
  • Employees: seek job security, fair pay, and good working conditions.
  • Customers: expect good-quality products/services at reasonable prices.
  • Managers: want success for the business and career progression.
  • Suppliers: prefer regular orders and prompt payments.
  • Local community: wants jobs and minimal environmental disruption.
  • Pressure groups: try to influence business activity to support ethical or environmental issues.
  • Government: interested in businesses paying taxes and providing employment.
• How stakeholders are affected by businesses:
  • Employees may be made redundant during cost-cutting.
  • Customers are affected by pricing and quality decisions.
  • Suppliers depend on businesses for income.
• How stakeholders influence business activity:
  • Shareholders can vote out directors.
  • Customers can stop buying products.
  • Pressure groups may create negative publicity.
• Conflicts between stakeholders: