Influence of stakeholders on business objectives

Internal and external stakeholders can also influence business objectives

Owners have a big say in how the aims of the business are decided, but other groups also have an influence over decision making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits.

Customers are also key stakeholders. Businesses that ignore the concerns of customers find themselves losing sales to rivals.

In a small business, the most important or primary stakeholders are the owners, staff and customers. In a large company, shareholders are the primary stakeholders as they can vote out directors if they believe they are running the business badly.

Less influential stakeholders are called secondary stakeholders.