Stakeholder Theory and Stakeholders

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What is a stakeholder?

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A stakeholder is any individual, organization, or group with a vested interest in the actions and outcomes of a specific organization.

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What are internal stakeholders?

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Internal stakeholders are individuals or groups who are part of the organization, such as employees, managers, directors, and shareholders.

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What are external stakeholders?

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External stakeholders are individuals or organizations not part of the business but have a direct interest in its decisions, actions, and performance.

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List some examples of internal stakeholders.

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Examples of internal stakeholders include employees, managers, directors, and shareholders.

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What are the interests of employees as internal stakeholders?

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Employees are interested in improved terms and conditions of employment, better pay and bonuses, equal opportunities, job satisfaction, job security, and career progression.

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What is the role of senior management?

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Senior management plans and oversees the long-term aims and strategies of the organization.

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What are the responsibilities of directors in a company?

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Directors are responsible for the overall running of a company, advising the CEO, filing company accounts, setting targets, and monitoring activities.

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What are the interests of shareholders?

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Shareholders are interested in profit sharing (dividends), voting rights, and the financial return on their investment.

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Who are external stakeholders?

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External stakeholders include customers, competitors, financiers, labor unions, pressure groups, suppliers, the government, and the local community.

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What do customers expect from a business?

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Customers expect competitive prices, acceptable quality, safety, good customer service, and value for money.