Stakeholders
- Created by: josie001
- Created on: 05-08-22 14:02
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- Stakeholders
- Definition and examples
- Eg. supermarket
- Internal stakeholders
- Owners/ shareholders
- Managers
- Employees
- External stakeholders
- Community/ customers
- Suppliers
- Banks
- Government
- Internal stakeholders
- PRL stakeholders
- Internal
- CEO Board
- Department heads
- Employees
- External
- Communities of clubs / customers that attend games
- Suppliers eg. Evo, Oracle, Pinnacle
- Shareholder clubs
- Investors eg. CVC
- Internal
- Eg. supermarket
- Types and needs of stakeholders
- Internal: Investors, directors, other departments
- External: Town councils, government, regulatory bodies
- Connected: Customers, suppliers, freight forwarders
- Shareholders/ owners - high profits
- Customers - good product/ service at a low price
- Employees - Salary, good work conditions, high profits
- Suppliers - prompt payment, large orders
- Partners - Prompt response, clear direction
- Stakeholder theory
- Clarkson
- Secondary stakeholders:•those that have a limited direct influence on the organisation and without whom the company would survive
- Primary: Those that have a direct effect on the company
- Mendelow's matrix
- Keep satisfied: (high power low interest)
- Have the potential to move into the ‘High Interest and High Power’ group
- By keeping them happy they are less likely to gain interest and exercise their power to influence
- Manage closely (High power, high interest
- Likely have the power to stop the change or strategy going ahead if they are unhappy
- Likely to have significant influence and may be the driver behind the change or strategy
- Key players and a business will need to actively engage this group
- Monitor (minimum effort, low power low interest
- Unlikely to have an interest in the organisation and direction due to their lack of power to influence a situation
- Likely to accept the position and show little resistance
- Keep informed (Low power high interest)
- Have an interest in what is happening, however they are unlikely to have the power to influence change
- They could attempt to join forces with a group with power
- Keep satisfied: (high power low interest)
- Shareholder theory (CSR link)
- Basic shareholder theory says that only shareholders have real claim to influence a company.
- Directors of the company have a moral and legal duty to only take into account shareholders’ interests.
- Directors should concentrate purely on maximising profit so that shareholders get a return on their investments.
- Instrumental and normative view of stakeholders
- Instrumental
- Reflects view that organisations have
many legal and economic responsibilities.
- If the organisation fulfils its responsibilities to its stakeholders, eg, employees, customers, it will maximise its profits.
- Reflects view that organisations have
many legal and economic responsibilities.
- Normative
- Organisations have a moral duty towards all stakeholders.
- Organisations should be ethical and philanthropic (based on the work of German philosopher Immanuel Kant)
- Instrumental
- Clarkson
- Definition and examples
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