Businesses need to be aware of their stakeholders. The activities of a business will affect many of their stakeholders. The stakeholders can also influence the decisions that a business makes.
Different stakeholderAny person, group of people or other organisation that has an interest in the activities of a business. will expect different things from a business. Given their different interests in the business, sometimes their expectations can cause conflictA disagreement over something.. The business has to balance these various interests.
Some examples of the different priorities of stakeholder groups:
shareholderA part owner of a private or public limited company.and owners want to ensure the business is successful and are interested in how much profit the business can make
managers want a good salary and opportunities for further career progression
employees want good levels of pay, job satisfaction and job security, and may also be interested in career progression
customers want good quality and a range of products at reasonable prices
suppliers want to receive payments on time, and regular orders
the local community (people living in the area) may be looking for work, which local businesses can provide
pressure group A pressure group is a group of people who try to influence business activity in the interests of their members and supporters. want to increase knowledge of their cause, eg if a business is going to increase traffic pollution in their area
the government wants businesses to create more jobs in order to raise more money from taxes and save money on benefit payments
