Stakeholder Concept

A stakeholder is any individual or organization that is affected by the
activities of a business. They may have a direct or indirect interest in the
business, and may be in contact with the business on a daily basis, or may just
occasionally.

The main stakeholder in businesses are:

·      Shareholders: They will be interested in their
dividends and capital growth of their shares.

·      Management and employees: They may also be shareholders. They
will be interested in their job security, prospects and pay.

·     Customers: They are interested in fair price
and safe products.

·      Suppliers: Their interests are regular business
and prompt payments.

·      Banks and other financial
organizations: They lend money to the business.

·      Government: Their special concerns are revenue,
customs and excise, as they will be collecting taxes from businesses.

·      Trade Unions: They will represent the interests if
the workers.

·      Pressure Groups: Their interests are whether the
business is acting appropriately towards their area of interest.

·      Local Community: They are interested in jobs and
minimum disruption in their daily lives.