Stakeholders

Stakeholders

  • anyone w/ interest in actions of business. (internal/external, primary/secondary)
  • e.g: customers, employees, shareholders, gov, suppliers,community
  • needs considered when making decisions to help avoid resistance to change
  • stakeholder mapping (relative power of each stakeholder group against degree of interest)
  • helps inform managers on how important each group is + involvement of decision making process
  • hard to meet all needs, may overlap so join to inc power e.g. community support employees when taking industrial actions to strengthen voice
  • may conflict actions of 1 group make weaken another power e.g. suppliers lower prices to encourage business to stay in UK reducing power of shareholders wanting business to relocate abroad to lower costs

 

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Relationship with Stakeholders

Influences on Relationship w/ Stakeholders

  • leadership style
  • mission + objectives (financial, social, ethical, environ)
  • stakeholder power + interest
  • market conditions incl competition
  • business form
  • external infl e.g. legislation

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How to Manage Relationship w/ Diff Stakeholders

  • Communication (informed, involve third parties e.g. trade unions, pressure groups
  • Consultation (share proposals + seek opinions early in decision making proces)
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