1. Stakeholders
BOH4M

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

3. Who is affected by the actions of a business?

4. 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

5. Internal stakeholders

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

7. 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

8. 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

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

10. 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

11. External Stakeholders

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

13. 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

14. 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

15. 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

16. 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

17. 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.

18. 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)

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

20. 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)