A stakeholder could be termed as an individual or group affected by and has an interest in the business. Any sort of business needs and relies on its stakeholders, in order to run its operations successfully. They mostly determine the success or failure of any business activity. They include shareholders, management and directors, employees, banks and other lenders, government, community, suppliers and customers. Each of these stakeholders influence the business in different ways, and this essay will briefly explain their roles.
Shareholders are responsible for the election of the board of directors for the business. These may also be termed as the owners of the entity. Their main interest is mainly profit growth as well as dividends. If say a business has several functions, in which one of them may not be performing well in terms of profit generation, the shareholders have the right to close it and invest in something else.
Management and Directors
These act as decision makers for the business. They are responsible for making sure that the business operations run smoothly while satisfying employees interests. Their major interests are salaries, job satisfaction, as well as status.
Employees are responsible for the outcome of the business quality. Their dedication and commitment to duties will determine the success or failure of the business. Management therefore needs to make sure that their needs are satisfied and are equally motivated to carry out their duties. If employees are involved in fraudulent activities due to lack of motivation, it is the business that suffers. Their main interests are therefore salaries and wages, job security as well as motivation. Motivation may include incentives for targets achieved or annual bonuses.
Banks and Other Lenders
Banks or lenders have the power to withdraw banking facilities for a business. This would affect negatively on its activities and may cause its shut down. For...