Information on various stakeholders of an organisation.

1. Stakeholders

2. Internal stakeholders
Employees - Job security,
working environment.
•
motivation makes dynamic and loyal
workers.
Shareholders (stockholders)
- Maximize dividends, achieve
capital gains
Managers and directors Maximize profits, achieve fringe
benefits, look after long term health
of organization.

3. External stakeholders
Suppliers - Strive for regular
contracts at competitive prices, try
avoid long credit periods.
Customers - ‘Customer is always
right’ , Provide business with most of
its revenues
Competitors - Stimulus to
innovation and product
development.
Government - Avoid unfair
practices, ensure health and safety

4. Special Interest Groups (SIG’s)
Trade unions
Uphold and enhance the conditions of work for
members
!
Campaign for: Wages and salaries, introduction of
minimum wage, better working conditions etc.

5. Special Interest Groups (SIG’s)
Pressure groups
Consist for individuals with common interests who
wish to influence change in the organization.
!
Try and influence government policies with the
support of the general public.
!
Actions include:
Public relations
Lobbying
Boycotting

6. Special Interest Groups (SIG’s)
Industry trade groups
Success
‣ Place demands on the businesses
‣ Specialize in promoting aims of
particular industries.
!
‣ Funded by organizations that
operate in that industry.
!
Eg: Anti - piracy campaigns.
!
‣ Trade associations - Promote
products of an industry.
!
Eg: Farmers’ association
collaborating to promote benefits of
eating fruits and vegetables.
Local community
Funding
Public opinion
No. of members
Commitment
that operate in the community.
!
Includes:
!
• Job creation.
!
• Consideration of local
environment.
!
• Increased variety of products at
cheaper prices.
!
• Sponsorship of local events.

7. Should firms be afraid of SIG’s?
Power of the SIG - Greater
power = greater influence.
Market power of firm - More
monopoly power = less
reaction to SIG.
Compliance costs.
Stakeholder views - With
respect to firms image.
Objectives with respect to
CSR.

8. Stakeholder
conflict
Managers make decisions which
may address the interests of only
one stakeholder group = conflict.
!
!
!

9. Stakeholders and business strategy
How to deal with conflicting stakeholder needs?
The type of organization: Public limited companies give
importance to shareholders.
!
Aims and objectives: Profit vs. CSR
!
Source and degree of power of each stakeholder group: Are the
trade unions strong?

10. References
http://
www.communityguide.ca/
sites/default/files/realtors/
Money_symbol.jpg’
http://www.clker.com/
cliparts/e/e/
2/5/119498583913329015
34government_icon__symbo_01.svg.hi.png
http://
www.smarttrainer.co.nz/
image/cache/data/
Fotolia_26160800_XS-100
0x800.jpg
http://www.tutor2u.net/
blog/index.php/politics/
comments/pressure-grouppower1
!
Business and Management,
Paul Hoang, 2nd edition.

11. End