stakeholders

Stakeholders

A stakeholder is a person, group or an organization that has interest or concern about organization.

Internal stakeholders include Employees, Managers, Owners/Shareholders. They are all affected by wages and job stability. Managers may get bonuses so they want the business to be very successful. Owners/Shareholders want the best for the company so they make more money.

They work for the business directly and if something happens to the company they will be effected. External stakeholders include Customers, Suppliers, and Government. They are involved with the company but not employed directly by the company. Customers are interested in prices and quality of the product. Suppliers are interested in the success and stability of the company so they can ensure they will have a customer in the future. The Government is interested as company's (especially large ones) pay taxes and employ people.

Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees. An example of a negative impact on stakeholders is when a company needs to cut costs and plans a round of layoffs. This negatively affects the community of workers in the area and therefore the local economy. Someone owning shares in a business such as Microsoft is positively affected, for example, when the company releases a new device and sees their profit and therefore stock price rise.