Businesses need to be aware of their stakeholders. The activities of a business will affect many of their stakeholders. The stakeholders can also influence the decisions that a business makes.
A stakeholder is any person, group of people or other organisation that has an interest in the activities of a business.
Businesses need to be aware of their stakeholders, as many of them will be affected by its activities. Stakeholders can also influence the decisions that a business makes.
Internal stakeholders work within a business, either making decisions or carrying them out. External stakeholders do not work within a business but are affected by its activities.
There are eight main types of stakeholder:
Stakeholder | Definition |
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Shareholders and owners | In a public limited company (PLC), these are people who influence the business’ aims, objectives and strategic activities. In a limited company (LTD), these are people who make business decisions but need to agree them with the other shareholders. Shareholders are part owners of a private or public limited company. |
Managers | Staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required. |
Employees | Staff who carry out the day-to-day work of the business. |
Customers | People who buy products or services from the business. |
Suppliers | Other businesses and organisations that provide products or services to the business, eg a utility company that supplies it with electricity, or a business that provides the seats used when producing a car. |
Local community | People, organisations and businesses that live or are located in the area around the business. |
Pressure groups | Groups of people who share a common interest that is related to the business, eg an environmental pressure group may actively promote a shared interest. |
Government | The business will make tax payments to both local and central government. |