THE INTERESTS OF INTERNAL STAKEHOLDERS

Definition: any individual or groups or individuals who have a direct interest in a business because the actions of the business will affect them directly.

Employees Managers Directors Shareholders

1. Explain at least 3 ways in
which this stakeholder might
have an interest in the
business
2. Explain at least 1 way in
which the interests of this
stakeholders might conflict
with the interests of other
stakeholders.
Job security
Better pay and bonuses
Good working conditions
improve customer relations
Improve their own salaries
improve operational
efficiency, labour
productivity and profits
improve their share Share earned profits
ownership rights and Have voting rights at the
performance related company
bonuses.
improve the competitiveness
of the organization
They are concerned with the
organization’s return on
investment for their
shareholders.

3. If possible, explain ways in

which the interests of this
stakeholders might agree
with the interests of other
stakeholders.

1
 THE INTERESTS OF EXTERNAL STAKEHOLDERS
Definition:

Customers Competitors Suppliers Financiers (investors)

1. Explain at least 3 ways in
which this stakeholder might
have an interest in the
business

2. If possible, explain at least

1 way in which the interests
of this stakeholders might
conflict with the interests of
other stakeholders.

3. If possible, explain 1 way

in which the interests of this
stakeholders might agree
with the interests of other
stakeholders.

2
 THE INTERESTS OF EXTERNAL STAKEHOLDERS
The local community Pressure groups The Government
1. Explain at least 3 ways in
which this stakeholder might
have an interest in the
business.

2. If possible, explain at least

1 way in which the interests
of this stakeholders might
conflict with the interests of
other stakeholders.

3. If possible, explain 1 way

in which the interests of this
stakeholders might agree
with the interests of other
stakeholders.