This document discusses the various stakeholders of a business and their interests and expectations. Stakeholders include shareholders who provide capital and expect returns, employees who expect fair treatment and safe working conditions, governments who expect tax payments and legal compliance, the general public and society who expect ethical practices, customers who expect good value and quality products, suppliers and creditors who expect prompt payments, and the environment which businesses should protect. The document then provides an example of how a new petroleum product that reduces oil usage would impact each stakeholder group over five years, including decreased profits and job losses.

1. Stakeholders

2. Stakeholders
• Any group or individual who has an
interest in or is affected by the activities of
a business.

3. Stakeholders
Shareholders
Suppliers/
Employees
creditors
Business
Government Customers
Society
Environment general
public

4. Shareholders
• Owners/investors provide capital for growth
• Expect
– management to make financially sound decisions
– increasing profit
– adequate return on investments
Employees
• The human side of a business, performance and profitability
linked
• Expect
– safe and healthy workplace
– fair treatment in promotion
– fair pay level

5. Government
• Governments at all levels have an impact on all business.
– Local, State and Federal
• Expect
– businesses to pay taxes
– adherence to laws
Society 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

6. Customers
• Expect
– acceptable price for goods and services
– safe, reliable products
– guarantees supported
– no misleading advertising
Suppliers / creditors
• Provide the inputs for the business
• Expect
– prompt payment
Environment
• Care and protection of immediate environment, sustainability
and care of limited resources

7. Stakeholder Activity
A large petroleum company has discovered a new product that will minimise the
use of oil in motor vehicles. As a result, it is envisaged that the product will
decrease industry profits for five consecutive years with half the industry-related
workforce eventually being made redundant. For each group of stakeholders
note the impact of this development.
Shareholders
Employees
Customers
Suppliers/Creditors
Government
Environment
Society and General Public