CHP - STAKEHOLDERS grade 10 icse .pptx
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- 2. Who are involvedin business activity? Various groups of people have an interest in business. Such groups are referred to as stakeholders. They include: Owners or shareholders Managers Employees Customers Government Suppliers The community Competitors
- 3. Business Owners Business Owners Entrepreneur Shareholders Directors Managers Employees Individuals Institutional Investors OtherCompanies A Summary of Business Owners
- 4. What are stakeholders? People or organisations with a special interest in a business. This is normally because they are directly affected by the business and how it operates – both now and in the future.
- 5. Relationships and Business Buildingrelationships is one of most important areas in business today Can be associated with organizational success and misconduct Stakeholder framework Helps identify internal and external stakeholders Helps monitor and respond to needs, values, and expectations of stakeholder groups
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- 7. • Stakeholders areindividuals or organizations that are affected by the consequences and outcomes of decisions. • Internal stakeholders are those within an organization with an interest in its success and failure, since they may be rewarded or punished accordingly. • Internal stakeholders include employees, managers, executives, and stockholders and other owners. Internal Stakeholders
- 8. • External stakeholdersare individuals, groups, and entities from outside that are affected by the consequences and outcomes of an organization's decisions. • External stakeholders include customers, suppliers, governments, and communities. • External stakeholders can exercise different types of power over an organization and try to influence its decisions through applying economic or political pressure. External Stakeholders
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- 10. Stakeholder Orientation Thedegree to which a firm understands and addresses stakeholder demands Three activities: Generation of data about stakeholder groups Distribution of the information throughout the firm Organization’s responsiveness to this intelligence
- 11. Social Responsibility Isan organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact Four levels of social responsibility: Economic Legal Ethical Philanthropic
- 12. Social Responsibility andthe Importance of Stakeholder Orientation From a social responsibility perspective, business ethics embodies standards, norms, and expectations that reflect concerns of major stakeholders Social responsibility is associated with: Increased profits Increased employee commitment Greater customer loyalty
- 13. Best and WorstCompanies for Social Responsibility
- 14. Implementing a StakeholderPerspective 1. Assessing the corporate culture 2. Identifying stakeholder groups 3. Identifying stakeholder issues 4. Assessing organizational commitment to social responsibility 5. Identifying resources and determining urgency 6. Gaining stakeholder feedback
- 15. Power and influence Somestakeholders are powerful. They can influence how the business operates. Some stakeholders have little power. The business can virtually ignore their views.
- 16. Stakeholder interests 1 Allstakeholders have different types of interests: Customers – price, quality, range of supplies, opening hours, facilities, etc Employees – pay, working conditions, job security Owners/shareholders – profit, share price, dividends The local community – road building, pollution, safety, house values, jobs
- 17. Stakeholder interests 2 Government – legal issues, environmental issues, competition Pressure groups – interests of members and those they represent Suppliers – price paid for their supplies, further orders Financiers – profits, return on money invested, repayments of loans
- 18. Conflict and stakeholders Local community against expansion of business, employees want job security Shareholders want high dividends, managers want to use profits for investment Suppliers want high prices for goods they supply, customers want low selling prices Stakeholders with different interests may be in conflict, eg
- 19. The role ofthe entrepreneur as a stakeholder Innovation Organization Risk taking
- 20. Types of stakeholders The government Thelocal community Owners and shareholders Employees and managers Customers Financiers Pressure groups Suppliers Stakeholders
- 21. Types of Shareholders Directors Managers Employees Individuals Institutional Investors Other Companies
- 22. Other Stakeholders Customers Suppliers Government Community
- 23. Stakeholders and theirobjectives Stakeholder Main Objective Directors To direct the strategies and major decision making of the business. To retain control. To increase their own power and status from business growth. Shareholders To receive dividends from after- tax profits. To share in the success/profitability of the business through an appreciating share price. Workforce To receive a fair wage. To ensure good working conditions. To secure their jobs through the survival and expansion of the business.
- 24. Stakeholders and theirobjectives Stakeholder Main Objective Customers To obtain good value for money from the goods and services purchased. To receive high levels of customer service. To receive after sale service and supply of spares from businesses which survives into the future. Suppliers To continue to sell profitably to the business. To be paid promptly and fully for the goods supplied. Bank Lenders • To be paid back in full when repayments are due. •To receive interest on loans when due.
- 25. Stakeholders and theirobjectives Stakeholder Main Objective Community To benefit from employment the business creates. To be free from environmental disadvantages the firm might create. Government • To receive tax revenues from profitable firms. •To direct the operations of the business for the benefit of the community/nation. •To control business operations and performance to ensure it remains within national laws. •To assist businesses in accordance with national and local policies. Competitors • To compete by all lawful means. •To differentiate its products from those of other businesses. •To compare and contrast performances with other businesses.
- 26. Stakeholder-communication matrix Thestakeholder communication matrix is a tool that displays the SR communication with stakeholders. It enables the organization to obtain an overview of the SR issues and the required communication about those issues with stakeholders. The matrix uses important input from the issue matrix. The matrix has a twofold objective: Providing an overview of the SR communication with stakeholders; Involving the organization and assigning those responsible.
- 28. Examples of Stakeholders Representativesfrom Organizations/Institutions Pain & cancer advocacy groups (i.e., ACS, POPAN, Livestrong Army) National professional associations (i.e., AMA, APS, AAPM, FSMB) State professional organizations/chapters (i.e., State Pain Society, State Medical Society, ASPMN chapter, ONS chapter, State Hospice and Palliative Care group) Cancer Centers Hospitals Long Term Care facilities Hospices Granting agencies (i.e., RWJ, community foundations)
- 29. Examples of Stakeholders Representativesfrom State Government Boards of medicine, nursing, pharmacy, & dentistry Department of Justice Public health departments Controlled Substances Board Attorney General’s office Governor’s office Departments of Regulation and Licensing Representatives from Industry Insurance companies Pharmaceutical companies Medical device and equipment companies
- 30. Examples of Stakeholders Healthcare providers Physicians Nurses Pharmacists Social Workers Alternative Medicine Providers Physical Therapists Nursing Assistants Other Individuals Health care administrators Academics Health Educators Policy makers Media professionals Persons with pain Caregivers & family members Law enforcement Business/finance professionals
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Editor's Notes
- #4 The term ‘vested interest’ could usefully be introduced at this point. The obvious point that each student is a stakeholder in the school or college – and in organisations he/she visits as a customer or member applies here.
- #15 The next slide gives examples of the difference.
- #16 It is useful to link this slide and the following one to the way in which stakeholder groups often respond to different types of changes made by an organisation, such as increasing prices or announcing redundancies. Students could be asked to identify one change in each case which would a) negatively affect the group and b) positively affect the group.
- #17 This slide is an extension of the last one. Again students could be asked to identify positive and negative changes and possible responses.
- #18 The examples shown on the slide may need to be discussed in greater detail. It might be interesting to ask students to identify one change the school/college could make which would suit staff but not students (or vice versa).
- #20 The term ‘directors’ could be added to employees and managers. The common interests of owners and shareholders (eg profit) will help to link these groups. Any current issues in the local community/papers could be highlighted. Students may not know the term ‘pressure group’ or may have a narrow view of it, eg environmental groups such as Friends of the Earth or Greenpeace. It would be useful at this point to extend this perception to all groups which represent their members or other sections of society, eg trade unions, charities, professional associations etc. Groups already studying Unit 3 may have fewer problems with the concept of financiers than those who have not yet started that Unit.