stakeholders

STAKEHOLD

ERS

STARTER

- - - - - - - - - - - - are the people or groups with an interest in the success or failure of an - - - - - - - - - - -. a business will want to look after those who can help it succeed, which might include the press or the government. These are - - - - - - - shareholders ,there may also be outsiders who think of themselves as stakeholders, Whether or not the organisation wants them to. These are the - - - - - - - - - stakeholders. For example , animal rights activists might become

- - - - - - - - - - at the way a cosmetics business tests new products on animals.

Stakeholders

organisation primary

S e c o n d a r y

concerned

S t a k e h o l d e r s O r g a n i s a t i o

n

P r i m a r y

secondary

C o n c e r n e d

WHAT ARE STAKE HOLDERS?

• Stakeholders are the people or groups with an

interest in the success or failure of an organisation.

• Stakeholders can affect or be affected by the organization's actions, objectives and policies.

• Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers and unions

Not all stakeholders are equal. Some stakeholders are less important to a business than others. The business would class them as either ;

Primary stakeholders or

Secondary stakeholders

PRIMARY STAKEHOLDERS

People or groups seen by the business to be vital to the organisation’s success or failure.

• For a restaurant a supplier may be considered a primary stakeholder , as it’s entire reputation depends upon the quality of the food from the supplier.

GREGGS AND IT’S PRIMARY STAKEHOLDERS

Greggs believe its two key stakeholders are its customers and staff .It places it ‘s share holders in third place, on the grounds that as long as staff and customers are happy, the business will be a financial success.

Cadburys however declares it’s main priority is to maximise returns for its shareholders.

KEY PRIMARY STAKE HOLDERS

For all organisations the key primary stake holders are;

• The owners /shareholders

• The staff /managers• The customers

Some also regard suppliers as key stakeholders

SECONDARY STAKEHOLDERS

People or groups who feel involved in the organisation’s success or failure , whether or not the management agree.

EXAMPLES OF SECONDARY STAKEHOLDERS

• Local residents who may be affected by traffic noise from deliveries or by pollution from smelly or smoky factory or farm.


• Local government, the organisation who will decide whether or not to allow future planning permission on for a warehouse for example.


Pressure groups, who may organise protests if they disagree with the way a business is run. For example Greenpeace will protest if that believe an organisation’s activities are damaging the environment.

SMALL BUSINESS STAKEHOLDERS

For small businesses the keys to success are customers, staff and suppliers. Treating them well and using them well are essential , this is partly because you never know when you might need them to help you.

The key stakeholder of a small business is it’s staff , as the enthusiasm of well motivated staff rubs off onto customers and suppliers.

You are about to open a restaurant in a small village what are your primary and secondary stakeholders?

PRIMARY OR SECONDARY?

Customers living in neighbouring villages

primary


Local journalists looking to write an article about the restaurant opening

secondary


Local residents objecting to increased traffic and parking problems

secondary


Local farmers supplying meat, vegetables and dairy to the restaurant

primary

Primary stakeholders Secondary stakeholders

Customers living in neighbouring villages

Local journalists looking to write an article about the restaurant opening

Local farmers supplying meat, vegetables and dairy to the restaurant

Local residents objecting to increased traffic and parking problems

A restaurant opening in a small village

SHAREHOLDERS

Most public limited companies have little choice but to treat shareholders as their most important stakeholder. This is because shareholders have the right to vote directors out of office if they believe the business is badly run.

British company law sets out that the primary duty of company directors Is to the shareholder . Therefore most companies will treat the shareholders as the single most important stakeholder.

CONCLUSION

Businesses need to think about their public image and the issue of stakeholders simply urges firms to think more widely of the effects of their business activities.