The document discusses stakeholders in business. It defines stakeholders as individuals or groups that are affected by or can affect a business's activities. It identifies common internal stakeholders as owners, managers, and employees, and external stakeholders as customers, suppliers, government, and the community. The document notes that stakeholders can have varying interests and levels of power over a business, and that balancing these interests is important for business success and social responsibility.

1. Stakeholders Focus
Yeganeh Majidi
NOV. 2015

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

3. Business Owners
Business Owners
Entrepreneur
Shareholders
Directors
Managers
Employees
Individuals
Institutional
Investors
Other Companies
A Summary of Business Owners

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

6. •Internal Stakeholders
•External Stakeholders

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

9. The Stakeholder Interaction Model

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

13. Best and Worst Companies for Social
Responsibility

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

22. Other Stakeholders
 Customers
 Suppliers
 Government
 Community

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.

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

31. Thank you!