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Stakeholders

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Information on various stakeholders of an organisation.

Published in: Business, News & Politics
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Stakeholders

  1. 1. Stakeholders
  2. 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. 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. 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. 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. 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. 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. 8. Stakeholder conflict Managers make decisions which may address the interests of only one stakeholder group = conflict. ! ! !
  9. 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. 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. 11. End

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