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Stake Holders meaning and explanation in
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- 2. Stakeholders • Any personor organization that has a direct interest in and is affected by the performance of a business • Internal Stakeholders – members of the organization (employees, shareholders, managers and directors) • External Stakeholders – do not form part of the business but have a direct interest or involvement in the actions of the organization (customers, suppliers and the government)
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- 4. Internal Stakeholders Internal Stakeholders •Employees Employees • Shareholders Shareholders • Managers Managers • Directors Directors
- 5. External Stakeholders External Stakeholders •Suppliers Suppliers • Customers Customers • Competitors Competitors • Pressure groups Pressure groups • Government Government
- 6. Pressure Groups Pressure Groups –Consists of individuals with a common Consists of individuals with a common interest who seek to place demands on interest who seek to place demands on organizations to act in a particular way or organizations to act in a particular way or influence a change in their behavior influence a change in their behavior – Greenpeace, groups campaigning against Greenpeace, groups campaigning against smoking, deforestation and the harmful smoking, deforestation and the harmful treatment of animals treatment of animals
- 7. Stakeholder Conflict Stakeholder Conflict •Different stakeholder groups have varying Different stakeholder groups have varying interests in an organization. interests in an organization. • Conflict arises because the business cannot Conflict arises because the business cannot necessarily meet the need of all its stakeholders necessarily meet the need of all its stakeholders simultaneously. simultaneously. • Major cause of potential stakeholder conflict is Major cause of potential stakeholder conflict is the pay and remuneration of the directors of a the pay and remuneration of the directors of a company. company. • Stakeholders have more than one interest in an Stakeholders have more than one interest in an organization, therefore, different objectives. organization, therefore, different objectives.
- 8. Resolving Stakeholder Conflict ResolvingStakeholder Conflict • Leaders need to look at 3 key issues: Leaders need to look at 3 key issues: –The type of organization in question The type of organization in question –The aims and objectives of the The aims and objectives of the business business –The source and degree of power The source and degree of power (influence) of each stakeholder (influence) of each stakeholder group group
- 9. Read organization Read organization objectivesand the objectives and the CUEGIS concepts CUEGIS concepts Pages 53-54 Pages 53-54
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- 11. Conflict • Refers tosituations where stakeholders have disagreements on certain matters due to differences in their opinions. This can lead to arguments and tension between the various stakeholder groups.
- 12. External Stakeholders • Areindividuals and organizations not part of the organization but have a direct interest in its activities and performance, e.g. customers, suppliers, pressure groups and the government.
- 13. Internal Stakeholders • Aremembers of the organization, e.g. the employees, managers, directors and shareholders of the organization.
- 14. Pressure Groups • Consistof individuals with a common concern (such as environmental protection) who seek to place demands on organizations to act in a particular way or to influence a change in their behavior.
- 15. Shareholders (or stockholders) • Arethe owners of a limited liability company. Shares in a company can be held by individuals and other organizations.
- 16. Stakeholders • Are individualsor organizations with a direct interest (known as a stake) in the activities and performance of a business, e.g. shareholders, employees, customers and suppliers.
Editor's Notes
- #5 Pressure groups – are non profit organizations established by their members to address a special interest of the group. Example: trade unions, animal rights activist groups, environmental protection groups