Stakeholders

What is a stakeholder?

• A stakeholder is anybody who can

affect or is affected by an
organization, strategy or project.
• They can be internal or external and
they can be at senior or junior levels.
• Some definitions suggest that
stakeholders are those who have the
power to impact an organization or
project in some way.
 Definition

• People or small groups with the

power to respond to, negotiate with,
and change the strategic future of the
organization'
(Eden and Ackermann 1998: 117).
 Role of Stockholders
• Stockholders’ initial role is to provide the capital a
company needs to grow and expand, or in the case of a
startup venture, the capital it needs to launch its
products or services into the marketplace.

• In private companies, stockholders may take an active

role in setting the strategic direction for the venture.

• They sometimes provide guidance or advice to the

company’s management.

• In public companies, stockholders can attend an annual

meeting and ask questions of the company’s top
management, including the CEO, about the decisions
they have made and the direction the company is going.
 Employees
• Top management may set the overall strategic
direction for the company, but the employees are
responsible for carrying out the tasks in an efficient
manner.
• Employees are the closest to the action.
• They interact with customers on a daily basis.
• In a manufacturing environment, they work directly on
the company’s products.
• The company’s success depends in large measure on
the skill and dedication of its employees.
• Without the employees performing their roles
proficiently, the company will not reach its potential.
 Manager
• Determine an appropriate schedule for regular performance.
• Deliver regular positive and constructive feedback to
manager as well the workers.
• Check-in on goal progress & Communicate and revisit
performance expectations.
• Improve your management and leadership skills.
• Acquaint yourself with the different management needs of the
different generations.
• Coach your employees in a way that strengthens two-way
communication and reinforces desired behaviors.
• Support your employees' professional and career
development while making them accountable for it.
• Submit your completed employee reviews by the designated
deadline.
 Owner

• The most important stakeholders.

• They decide what happens to the business.
They're the ones who make a profit if the
business is successful.
• In a sole trader or a partnership, they are the
owners.
• In a limited company, they are the
shareholders.
 Supplier

• A company’s ability to fill its customer orders

on time -- and bring the highest quality goods to
the marketplace -- depends in part on the role its
vendors or suppliers play.
• The company relies upon raw materials or
components being available when they are
needed and at reasonable prices.
• If the supply of one key item is interrupted, it
can cause a disruption in the company’s entire
manufacturing schedule.
 Society

• The Society provides the skilled workforce

that a company depends upon to maintain
its competitive edge.
• Members of the community, including the
news media, often play a watchdog role,
ensuring that the company is a good citizen
with fair business practices, concern for the
environment, and a willingness to
contribute to charitable and social causes.
 Government

• Taxation, The government

• VAT, collects taxes from
• legislation, the company, so it
• employment, benefits from the
• truthful reporting, company’s profits.
• diversity, It may invest taxes
• legalities, back in society.
 Creditors

* These individuals have loaned their money to the

company either as cash or by supplying raw
materials for production.
* The company pays creditors interest on their loans,
irrespective of whether the company makes profits.
* Creditors often hold the company's assets for
security.
* If the company defaults on the repayments, these
creditors have a legal right to claim the assets.
* Creditors face a risk of losing their investments if
the company files for bankruptcy.
 Shareholders
• A company belongs to its shareholders, who have spent
money and bought the shares of the company.
• There is a direct relationship between their investments
and the financial stability of the company.
• The better the company's position, the more money they
are paid.
• There are two types of shares: preference shares and
equity shares.
• Both classes of shares are paid after the company has met
its obligations such as paying creditors and providing for
taxes, depreciation and amortization.
• Preference shareholders are paid a fixed rate of dividend
before equity shareholders.
• Equity shareholders get to share the surplus profits.
 Customers

• A company's customers also are affected by

business conditions.
• When the company is not doing well, its
concentration on its customers diminishes.
• The company produces substandard products and
does not research into what the customers want.
• When the conditions are good, the company
wishes to make greater profits and provides
utmost attention to its customers, trying to match
the customer requirements in every way possible.