stakeholders
DESCRIPTION
Information on various stakeholders of an organisation.TRANSCRIPT
Stakeholders
Internal stakeholdersEmployees - Job security, working environment.
• motivation makes dynamic and loyal workers.
Shareholders (stockholders) - Maximize dividends, achieve capital gains
Managers and directors - Maximize profits, achieve fringe benefits, look after long term health of organization.
External stakeholders
Suppliers - Strive for regular contracts at competitive prices, try avoid long credit periods.
Customers - ‘Customer is always right’ , Provide business with most of its revenues
Competitors - Stimulus to innovation and product development.
Government - Avoid unfair practices, ensure health and safety
Special Interest Groups (SIG’s)
Trade unions
Uphold and enhance the conditions of work for members
!Campaign for: Wages and salaries, introduction of minimum wage, better working conditions etc.
Pressure groups
Special Interest Groups (SIG’s)
Consist for individuals with common interests who wish to influence change in the organization.
!Try and influence government policies with the
support of the general public. !
Actions include:
BoycottingLobbying
Public relations
Special Interest Groups (SIG’s)
Industry trade groups Local community
‣ Specialize in promoting aims of particular industries. !‣ Funded by organizations that operate in that industry. !
Eg: Anti - piracy campaigns. !‣ Trade associations - Promote products of an industry. !
Eg: Farmers’ association collaborating to promote benefits of eating fruits and vegetables.
‣ Place demands on the businesses that operate in the community. !
Includes: !• Job creation. !
• Consideration of local environment. !
• Increased variety of products at cheaper prices. !
• Sponsorship of local events.
Funding
Public opinion
No. of members
Commitment
Success
Should firms be afraid of SIG’s?
Power of the SIG - Greater power = greater influence.
Market power of firm - More monopoly power = less reaction to SIG.
Compliance costs.
Stakeholder views - With respect to firms image.
Objectives with respect to CSR.
Stakeholder conflict
Managers make decisions which may address the interests of only one stakeholder group = conflict.
!!!
Stakeholders and business strategy
How to deal with conflicting stakeholder needs?
The type of organization: Public limited companies give importance to shareholders.
!Aims and objectives: Profit vs. CSR
!Source and degree of power of each stakeholder group: Are the
trade unions strong?
References
http://www.communityguide.ca/sites/default/files/realtors/Money_symbol.jpg’
http://www.clker.com/cliparts/e/e/2/5/11949858391332901534government_icon_-_symbo_01.svg.hi.png
http://www.smarttrainer.co.nz/image/cache/data/Fotolia_26160800_XS-1000x800.jpg
http://www.tutor2u.net/blog/index.php/politics/comments/pressure-group-power1
!
Business and Management, Paul Hoang, 2nd edition.
End