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Business Studies

Stakeholders

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Businesses have different types of internal and external stakeholders, with different interests and priorities. Sometimes these interests can conflict.

What are stakeholders?

A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. They include:

  • Owners who are interested in how much profit the business makes.
  • Managers who are concerned about their salary.
  • Workers who want to earn high wages and keep their jobs.
  • Customers who want the business to produce quality products at reasonable prices.
  • Suppliers who want the business to continue to buy their products.
  • Lenders who want to be repaid on time and in full.
  • The community which has a stake in the business as employers of local people. Business activity also affects the local environment. For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents.

Internal stakeholders are groups within a business - eg owners and workers. External stakeholders are groups outside a business - eg the community.

A diagram showing the different interest groups attached to a business: owners, customers, workers, suppliers, managers, the community

Stakeholders

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