What are Stakeholders?
We have already mentioned that in last years "Cuts" Proposals, They consulted with 80 Stakeholders regionally.
So we at FFCL Thought we would try to find out what is meant by the term
Accounting - Introduction to Stakeholders
Author: Jim Riley Last updated: Wednesday 24 October, 2012
Introduction to stakeholders
Groups / individuals that are affected by and/or have an interest in the operations and objectives of the business
Most businesses have a variety of stakeholder groups which can be broadly categorised as follows:
Stakeholder groups vary both in terms of their interest in the business activities and also their power to influence business decisions. Here is a useful summary:
|Stakeholder||Main Interests||Power and influence|
|Shareholders||Profit growth, Share price growth, dividends||Election of directors|
|Banks & other Lenders||Interest and principal to be repaid, maintain credit rating||Can enforce loan covenants|
Can withdraw banking facilities
|Directors and managers||Salary ,share options, job satisfaction, status||Make decisions, have detailed information|
|Employees||Salaries & wages, job security, job satisfaction & motivation||Staff turnover, industrial action, service quality|
|Suppliers||Long term contracts, prompt payment, growth of purchasing||Pricing, quality, product availability|
|Customers||Reliable quality, value for money, product availability, customer service||Revenue / repeat business|
Word of mouth recommendation
|Community||Environment, local jobs, local impact||Indirect via local planning and opinion leaders|
|Government||Operate legally, tax receipts, jobs||Regulation, subsidies, taxation, planning|
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The BBC GCSE Bitesize Website for School Children gives this example
This Link can be found here!
Businesses have different types of internal and external stakeholders, with different interests and priorities. Sometimes these interests can conflict.
What are stakeholders?
A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. They include:Owners who are interested in how much profit the business makes.
Workers who want to earn high wages and keep their jobs.
Suppliers who want the business to continue to buy their products.
Lenders who want to be repaid on time and in full.
Internal stakeholders are groups within a business - eg owners and workers.External stakeholders are groups outside a business - eg the community.