Stakeholders• Any group or individual who has an interest in or is affected by the activities of a business.
Stakeholders Shareholders Suppliers/ Employees creditors BusinessGovernment Customers Society Environment general public
Shareholders• Owners/investors provide capital for growth• Expect – management to make financially sound decisions – increasing profit – adequate return on investmentsEmployees• The human side of a business, performance and profitability linked• Expect – safe and healthy workplace – fair treatment in promotion – fair pay level
Government• Governments at all levels have an impact on all business. – Local, State and Federal• Expect – businesses to pay taxes – adherence to lawsSociety and general public• People are part of communities and business impacts on these communities in many ways• Expect – disclosure of public information – ethical and socially responsible practices
Customers• Expect – acceptable price for goods and services – safe, reliable products – guarantees supported – no misleading advertisingSuppliers / creditors• Provide the inputs for the business• Expect – prompt paymentEnvironment• Care and protection of immediate environment, sustainability and care of limited resources
Stakeholder ActivityA large petroleum company has discovered a new product that will minimise theuse of oil in motor vehicles. As a result, it is envisaged that the product willdecrease industry profits for five consecutive years with half the industry-relatedworkforce eventually being made redundant. For each group of stakeholdersnote the impact of this development.ShareholdersEmployeesCustomersSuppliers/CreditorsGovernmentEnvironmentSociety and General Public