• A stakeholder is a term used to refer to individuals or groups of individuals who are affect and are affected by the operations of the business
  • Stakeholders can be divided into internal and external stakeholders
  • Each stakeholder has their own objective
  • These objectives might be in conflict with the objectives of other stakeholders
  • Investors/Shareholders are owners of a company who invest money in exchange for shares or equity in the business.
    • They are otherwise known as entrepreneurs
    • They are considered stakeholders due to their financial investment in the company.
    • The main aim or objective of investors is to maximize profits and see an increase in share value.
    • A conflict can arise between investors and the management over company direction or decisions affecting share value.
    • This conflict is the reason why some publicly traded companies choose to go private
  • Customers: this refers to individuals or organizations who purchase goods or services from the company.
    • Customers are considered stakeholders as they have an interest in the quality and value of what is being provided.
    • The main aim or objective of customers is to receive products and services that meet their needs and expectations at a fair price.
    • The objectives of customers can conflict with management over pricing, product quality or customer service.
  • Employees: People who work for the company.
    • Shareholders can be considered stakeholders as they are directly impacted by the company’s actions and decisions.
    • The main aim of employees is to have job security, fair pay and good working conditions.
    • Can conflict with management over pay and benefits, job security or working hours.
  • Suppliers: Organizations or individuals who provide the company with goods or services.
    • Suppliers are considered stakeholders as they have a financial interest in the company and rely on it for business.
    • The main aim or objective of suppliers is to receive payment for goods or services provided and maintain a good working relationship.
    • Suppliers can conflict with management over payment terms, delivery schedules or the quality of goods provided.
  • Management: People responsible for running the company.
    • They are considered stakeholders as they are responsible for the company’s success and their own job security.
    • The main aim or goal of management is to make strategic decisions that benefit the company and increase profits.
    • The objectives of management can conflict with shareholders over company direction, with employees over pay and benefits, and with suppliers over payment terms.
  • Government: The state and its agencies.
    • Are considered stakeholders as they have an interest in the company’s compliance with laws and regulations and the impact of its operations on the community and environment.
    • Their main aim to ensure the company operates in an ethical and sustainable manner and pays its fair share of taxes.
    • They can conflict with management over regulation compliance, taxes and environmental impact.
  • Community: The local population and surrounding area affected by the company’s operations.
    • They can be considered stakeholders as they are impacted by the company’s actions and decisions.
    • Their main aim to ensure the company operates in a socially responsible and sustainable manner, with minimal negative impact on the community.
    • They can conflict with management over environmental impact, noise and traffic issues.

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