The Influence of Stakeholders

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  • The Influence of Stakeholders
    • may be internal or external
      • internal stakeholders - inside the firm
        • include the owners & employees
      • external stakeholders - outside the firm
        • include customers, supplies, local community & government
    • different stakeholders affected by the business in different ways
    • employees interested in their job security & promotion prospects
      • improved if firm is profitable & growing
      • employees want decent wage & good working conditions
        • employees may benefit most when objectives are based on profitability, growth & ethics
    • Suppliers are who the firm buys raw materials from
      • firm provides them w their income
      • if firm is profitable & grows they'll need more materials & supplier will get more business
        • suppliers benefit most when firm sets objectives based on profitability & growth
    • local community
      • where business is based will suffer if firm causes noise & pollution
      • may gain if firm provides good jobs & sponsors local activities
      • benefit when objects are based on environmental sustainability, ethical consideration, profitability & growth
    • customers
      • want high quality products at low prices
        • benefit when objectives are based on customer satisfaction
    • govenment
      • will receive taxes if the firm makes a profit
        • benefit most when objectves are based on profitability, growthm or job creation

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