- Slides: 11
Stakeholders The stakeholders of a business are those individuals or groups who are affected by the activities of the business and so have an interest in its success or failure.
Owners possibly shareholders They want the company to succeed n n To make more money from the business Interested in the company to making a profit Want a good dividend Want their shares to increase in price
Managers are stakeholders They want the company to succeed n n n Better chance of promotion Successful company may reward them by paying them higher salaries Giving them a bonus Better fringe benefits If company fails they could lose their job
Workers are stakeholders They want the company to succeed n n n More likely to get better pay Chance of promotion Better facilities A failing company will n n n Threaten their jobs Freeze their pay Possibly cut their wages
Suppliers are stakeholders They want the company to succeed n n More orders for them More success for their business Failing company n n n Falling orders for them Less profit Job losses
Customers are stakeholders They have a stake in any business which they buy goods and services from n n They want low prices Best quality available Good service Innovative products
The Government is a stakeholder When a business succeeds n Business pays taxes – the more profit the business makes the more taxes it pays If a business fails n n Workers become unemployed Government will have to pay them unemployment benefit
Business has an impact on the local area Sometimes this will be beneficial n n n Creates jobs for people living locally Business might buy from local suppliers Provide a service to local people or businesses At other times it might not be n n The local area will suffer if a business fails and is a large employer It could pollute the local environment
Conflicts of Interest Shareholders and suppliers Shareholders want to get good dividends they might push the company into getting cheaper suppliers
Conflicts of Interest Shareholders and workers Shareholders want a good dividend, they might object to the workers getting a pay rise it might reduce company profit.
Conflicts of Interest Workers and the local area Factory might wish to expand, provide more jobs, local area might object because it sees the business as a polluter.