2. Who are involved in 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
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
Building relationships 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
7. • Stakeholders are individuals 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 stakeholders are 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
10. Stakeholder Orientation
The degree 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
Is an 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 and the 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
14. Implementing a Stakeholder Perspective
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
Some stakeholders 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
All stakeholders 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 of the entrepreneur as a stakeholder
Innovation
Organization
Risk taking
20. Types of stakeholders
The
government
The local
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
23. Stakeholders and their objectives
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 their objectives
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 their objectives
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
The stakeholder 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.
27.
28. Examples of Stakeholders
Representatives from 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
Representatives from 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
Health care 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