Business studies - Stakeholders

1. STAKEHOLDERS
Grade 8

2. In this lesson
we will learn:
 Different types of stakeholders
 Identify and explain internal stakeholders in a
business
 Identify and explain external stakeholders in a
business
 Provide examples of different categories of
stakeholders

3. Who are
stakeholders?
 Individuals or groups who affect and are
affected by business activities
 Different stakeholders have different interests
and different roles in a business
 There are two types of stakeholders.
 Internal stakeholders and External
stakeholders

4. Internal
Stakeholders
Internal stakeholders = individuals,
organisations and businesses directly
affected by the actions of a business.
Another name for internal stakeholder =
primary stakeholder

5. Internal
Stakeholders
Owners and managers
-An owner = person who has contributed
his or her own money to develop the
business.
-This gives him the right to participate in
decision making
-Manager is someone who takes
decisions about the way
which the business operates

6. Internal
Stakeholders
Shareholders
-Shareholders contribute to the capital of
limited companies.
-They are given the right to vote in the
annual meetings and receive a % from
profit called dividend

7. Internal
Stakeholders
Employees
-Those who are paid to do
different jobs in a businesses.
-A manager is also an employee
who is assigned to make
decisions for the business

8. External
Stakeholders
-People who are impacted by the
organisations actions as clients,
constituents, community partners and
others

9. External
Stakeholders
Customers
-Customers are the people who buy from
the business.
-They provide the revenue needed for the
business
-Businesses aims to gain customer loyalty

10. External
Stakeholders
Government
-Collect taxes from the businesses.
-Businesses are affected by government
economic policy, legislations (import &
export duty)

11. External
Stakeholders
Suppliers
-Businesses need raw materials to provide
goods and services to their customers.
They must maintain good relationships
with suppliers to enjoy benefits such as
discounts, trade credits etc.

12. External
Stakeholders
Pressure Groups
-These groups may have a particular interest
-They would campaign and it could influence the
government on changing to create politics that are in
favor of the pressure groups which may affect a
business

13. External
Stakeholders
Local community
-The business employs labour from the local
community.
A business is likely to do their corporate social
responsibility (CSR) by helping the community
in different ways.

14. Discuss on the
roles of :
Employees and managers
Customers and suppliers

15. Conflicts
among
stakeholders
Overlapping roles and responsibilities can
create conflicts among groups.
There can be conflicts both within the
group and between the groups