Introduction to Business Management
Stakeholders
1.4 Stakeholders
Stakeholders are individuals or groups that have an interest in or are affected by the activities of a business. Understanding stakeholder interests is important because business decisions can benefit some groups while negatively affecting others.
Internal Stakeholders
- Owners/Shareholders: Invest money, expect financial returns
- Managers: Responsible for planning, organizing, controlling operations
- Employees: Work for the business, expect fair wages, job security, safe conditions
External Stakeholders
- Customers: Buy goods/services, expect quality at reasonable prices
- Suppliers: Provide raw materials, expect reliable payments
- Government: Regulates business activity, collects taxes
- Local communities: Affected by employment opportunities or environmental impacts
Conflicts Between Stakeholders: Owners may want higher profits while employees want higher wages; customers want lower prices while businesses want higher revenue; communities want environmental protection while companies want expansion. Managers must balance these competing interests.