Different Stakeholders and their Influence
Stakeholders are people or a person that owns a piece of a business or an organisation. Shareholders can be from within the business or other people that don’t work or have anything to do with the business. The shareholders that may be from within the business include employees or managers. Shareholders from outside the company may be customers, competitors or local communities. These shareholders are affected by the business’s success and failure.
The external stakeholders invest money and other resources into the business or organisation and expect a return on the amount they invest. The internal stakeholders like the workers work for the business or organisation and expect job satisfaction and a good pay rate in return.
There are different types of stakeholders who have different amounts of influence and power in a business.
• Are most important to the business/organisation
• Business wouldn’t survive without the participation of primary stakeholders
• Primary stakeholders could be customers or suppliers
• Without the influence of secondary stakeholders a business can still survive
• Active stakeholders aim to get involved in the business’s activities they may be ‘managers, employees or pressure groups’
• Do not really aim to get involved in what the business does they may be the government or local communities.
Stakeholders have an equal influence on a business or organisation as the external stakeholders may become dissatisfied and stop investing into the business and the internal stakeholders may stop working due to job satisfaction so both of these have an influence on the company. The business must consider who it sells its shares to and analyse the impacts of the stakeholders.