Stakeholders

Stakeholders

• Any group or individual who has an interest in or is affected by the activities of a business.

Stakeholders

Suppliers/creditors

Government

EnvironmentSocietygeneralpublic

Customers

Employees

Shareholders

Business

Shareholders• Owners/investors provide capital for growth• Expect

– management to make financially sound decisions– increasing profit– adequate return on investments

Employees• The human side of a business, performance and profitability

linked• Expect

– safe and healthy workplace– fair treatment in promotion– fair pay level

Government• Governments at all levels have an impact on all business.

– Local, State and Federal• Expect

– businesses to pay taxes– adherence to laws

Society and general public• People are part of communities and business impacts on

these communities in many ways• Expect

– disclosure of public information– ethical and socially responsible practices

Customers• Expect

– acceptable price for goods and services– safe, reliable products– guarantees supported– no misleading advertising

Suppliers / creditors• Provide the inputs for the business• Expect

– prompt payment

Environment• Care and protection of immediate environment, sustainability

and care of limited resources

Stakeholder Activity

Shareholders

Employees

Customers

Suppliers/Creditors

Government

Environment

Society and General Public

A large petroleum company has discovered a new product that will minimise the use of oil in motor vehicles. As a result, it is envisaged that the product will decrease industry profits for five consecutive years with half the industry-related workforce eventually being made redundant. For each group of stakeholders note the impact of this development.