Businesses have different types of internal and external stakeholders, with different interests and priorities. Sometimes these interests can conflict.
What are stakeholders?
A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. They include:
- Owners who are interested in how much profit the business makes.
- Managers who are concerned about their salary.
- Workers who want to earn high wages and keep their jobs.
- Customers who want the business to produce quality products at reasonable prices.
- Suppliers who want the business to continue to buy their products.
- Lenders who want to be repaid on time and in full.
- The community which has a stake in the business as employers of local people. Business activity also affects the local environment. For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents.
Internal stakeholders are groups within a business - eg owners and workers. External stakeholders are groups outside a business - eg the community.