What are Stakeholders?

What are Stakeholders?

That is a question that we here at FCCL Have been asking for sometime!

We would like to know how 

WEST YORKSHIRE FIRE AND RESCUE SERVICE Determine who are their 

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

Stakeholder

Accounting - Introduction to Stakeholders

Author: Jim Riley  Last updated: Wednesday 24 October, 2012

Introduction to stakeholders

Let’s start with a definition of stakeholders, which are:

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

View the full page here

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.

Managers who are concerned about their salary.
Workers who want to earn high wages and keep their jobs.

Customers who want the business to produce quality products at reasonable prices.
Suppliers who want the business to continue to buy their products.
Lenders who want to be repaid on time and in full.

The community which has a stake in the business as employers of local people. Business activity also affects the local environment. For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents.

Internal stakeholders are groups within a business - eg owners and workers.External stakeholders are groups outside a business - eg the community.

 SO Here at FCCL, we would consider that WYFRS's STAKEHOLDERS would be:-

1. Owners/Shareholders - They would be the Tax Payers of West Yorkshire
2. Directors/Managers - Self explanatory 
3. Customers - The Public of West Yorkshire 
4. Suppliers - A difficult one to define! but Probably anyone who has an Interest in ARSON
5. Workers - The Employees (an ever decreasing Number!)
6. Lenders/Banks - HM Treasury
7. Community - Same as Owner/Shareholder & Customers

WYFRS , in the -

FORMAL CONSULTATION PROCESS IN

RELATION TO THE SEVEN IRMP

PROPOSALS SUBMITTED TO WYFRA ON

9 SEPTEMBER 2011,

listed share holders as 

1. Members of Parliament; 
2. district, town and parish councils; 
3. neighbouring fire authorities and emergency services; 
4. local representative bodies; 
5. external employer and employee organisations
6. Voluntary bodies

 REMEMBER-80!

Now considering that there are

1. 17 MP's
2. Approximately 370 Local Councillors
3. Population approx 2.5 million

REMEMBER-80!

We can certainly see how well WYFRS carry out their consultation! or NOT as the case may be!!

PLEASE REMEMBER TUESDAY 13th November is consultation time in Marsden near Huddersfield

for further details click HERE