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

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

-

-

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)