Stakeholders in a business include owners/shareholders who provide capital and make major decisions, employees who provide labor, customers who purchase goods and services, the government which establishes laws and regulations, the community/society which is impacted and provides infrastructure, and suppliers who provide resources. Each stakeholder group has certain rights and expectations from the business as well as responsibilities in their respective roles.

1. And
their

3. • Identify the stakeholders in society
• Discuss the role of the stakeholders involved in business
activities

4. OWNERS (SHAREHOLDERS)

5. • Provide capital for the business
• Attend annual general meetings to receive annual reports
and elect the directorate
Rights (what they expect
from the business)
Responsibilities/Functions
To keep informed of the
performance of the business
To keep capital invested in the
business
Receive a share of the profits To make decisions that affect the
long term performance of a
business
Have an opportunity to
appoint the directors of a firm

6. • EMPLOYEES

7. • Provide labour services (manual and mental effort) to the
business so that goods and services will be provided for
customers
Rights (what they expect from
the business)
Responsibilities/Functions
To be treated fairly Perform duties with care and
diligence
To be paid as described by the
contract
Meet conditions laid out in
employment contract
To be allowed to join any trade
union if desired
Cooperate with management in all
reasonable requests

8. • CUSTOMERS

9. • Purchase goods and services. The revenue raised from
the sale of these goods and services will allow the
business to function and expand
• Provide feedback to the business about its products
Rights (what they expect from the
business)
Responsibilities/Functions
Receive goods and services that meet
established standards
To be honest in paying for goods
received (this means not stealing)
Be offered replacements, repairs and
compensation in the event of failure of
the product
Not to make false claims about services
or goods
To complain in a reasonable way
To report unethical practices

10. • GOVERNMENT

11. • Maintain law and order
• Achieve economic stability and encourage business
activity
Rights (what they expect from
the business)
Responsibilities/Functions
Business should meet legal
constraints such as paying taxes
on time and producing goods that
are legal
Treat businesses legally under the law
Prevent unfair competition
Establish trading relations with other
countries to facilitate international trade
Increase social welfare

12. • COMMUNITY/SOCIETY

13. • Provide public services and infrastructure to the
individuals and businesses thereby allowing them to
operate within legal limits
Rights (what they expect from
the business)
Responsibilities/Functions
Consultation about major changes
that might affect the society
Provide the means through which
members can make a living
Not to have individuals affected by
business activities
Meet reasonable requests from
business for local services like
roadways and waste disposal
Facilitate cooperation amongst
members of the society

14. • Suppliers

15. • Provide resources needed by firms to produce goods and
services
Rights (what they expect from
the business)
Responsibilities/Functions
Frequency of communication Provide high quality inputs
Prompt payment for services
provided
Provide accurate and timely
invoices