Stakeholders BOH4M

Learning Goals 14. I will be able to describe what and who are stakeholders

Who is affected by the actions of a business?

Stakeholders Stakeholders are groups or individuals with an interest in a business. Stakeholders may affect or be affected by the decisions of an organisation. Examples of stakeholders include: Owners/shareholders Employees Customers Local community

Internal stakeholders

Internal stakeholders Internal stakeholders are those that are considered to be part of an organisation. The main internal stakeholders are: Shareholders/owners Employees

Shareholders Shareholders: own a part of a business do not get involved in the day-to-day running of the business have a right to vote at the company’s AGM receive a share of the profits – this is called a dividend

Shareholder interests Each stakeholder group will have its own expectations of the business. Shareholders are likely to have an interest in: Increased profits and hence dividends through such things as: Growth Enhanced reputation Greater efficiency

Employee interests Employees are likely to expect: fair pay decent working conditions job security access to training for additional qualifications

Manager interests In addition to the usual employee interests, managers may expect to be able to make their own decisions and have the opportunity of promotion

External Stakeholders

External stakeholders External stakeholders are outside an organisation. The main external stakeholders are: Customers Government Suppliers The local community

Customer expectations Customers are likely to expect such things as: a product range that meets their needs value for money good quality products and customer service a ready supply of goods and services And possibly: ecologically sound/sustainable products

Government interests The government has an interest in businesses because: it receives taxes from business profits, employee incomes and customer purchases businesses provide jobs and therefore employment levels and benefits payments are affected the economy is dependent on the operations of business it has a range of legislation and regulations that businesses must comply with

Supplier expectations Suppliers may provide a range of services to businesses, as well as raw materials and finished goods. Suppliers may expect: to be paid in a timely fashion to receive regular orders

Local community The local community may have expectations about a company regarding: the availability of jobs the level of pollution and congestion created the support provided by a business regarding community projects and concerns

Business expectations of stakeholders Different stakeholders have their own interests and expectations of a firm, however, the business will also have expectations of the stakeholders e.g. suppliers may be expected to comply with ethical and environmental guidelines set down by the business.

Stakeholder Activity Step 1: Create a business and a product that your business sells. Step 2: Create a list of all of the stakeholders in your business Step 3: Create a chart that names each stakeholder and explains the roles they have in your company (example on next page)

Stakeholder Potential Role in Business Customers - Decide if they want to buy our product. - Expect good quality products at a reasonable price

How could CSR policies meet stakeholder interest How could CSR policies meet stakeholder interest? How could they go against stakeholder interest? Activity: Kellogg's Case Study – document on my website. Read case study and answer questions. You don’t have to do the TASK part (unless you want to)