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:-
- Owners/Shareholders - They would be the Tax Payers of West Yorkshire
- Directors/Managers - Self explanatory
- Customers - The Public of West Yorkshire
- Suppliers - A difficult one to define! but Probably anyone who has an Interest in ARSON
- Workers - The Employees (an ever decreasing Number!)
- Lenders/Banks - HM Treasury
- 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
- Members of Parliament;
- district, town and parish councils;
- neighbouring fire authorities and emergency services;
- local representative bodies;
- external employer and employee organisations
- Voluntary bodies
Now considering that there are
- 17 MP's
- Approximately 370 Local Councillors
- Population approx 2.5 million
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