Stake holders

Lesson Objectives

1. Define stakeholders
2. State why it is important to identify stakeholders
3. Identify stakeholders in a business
4. Outline Roles of Stakeholders involved in
business activities
Introductory Activity

 Identify all the participants in the scenario below

 Sandra has graduated from school and plans to grow layer chickens in her
backyard. She plans to sell the eggs to the two corner shops in her
neighborhood. Her youngest cousin, Althea, would assist her with caring for
the chickens.
 As soon as Sandra started building a structure for the chickens, several
persons began to voice their concerns. Phillips, who lived beside her, wanted
to know how often she would be cleaning the hen-house. Althea wanted to
know if she would be paid a reasonable amount of money. Tommy, one of the
corner-shop owners, wanted to know if Sandra knew how to grow healthy
chickens. Sandra is also concerned about her profits.
Definition Stakeholders

Stakeholders are the various groups within and outside an organization that
stands to potentially gain or lose as a result of the organization’s action
Why its important to identify
stakeholders in a business
 Know who it depends on for its survival
 Know who has a vested interest in the business
 Can take these groups into consideration when making decisions; this helps
the business to meet the expectations and priorities of its stakeholders
Role of stakeholders
Employers/Managers/Owners

 The best return on their investment

 Efficient management of the resources through planning, controlling and
other functions in the business
 Provide goods at a high quality, reasonable price with necessary after-sales
service
 To act ethically and socially responsible
 Fair payment for work, fair and respectable treatment, good working
conditions and the necessary tools and equipment provided for the employees
Employees

 To carry out the activities stated on their job description

 To efficiently utilize the resources placed in their care
 To act ethically and socially responsibly
Consumers

 Provide feedback on product quality and also design

through complaints and even suggestions
 Contribute to research by participating in surveys, product
testing
 Use the product/service provided in the way that it was
intended to be used
Government

 Put in place regulations that force the business to consider

the best interest of the other stakeholders
 Assistance to business in the form of loans, training,
research and financial aid/subsidies;
 Provide information to all the stakeholders
 Provide protection for consumers through laws and
agencies; also protection to all the other stakeholders
Suppliers

 Provide good quality raw material and finish goods

to the business at the right time and at the right
price
 Must be flexible and know how to build
relationship
Recapitulation

 Questioning of students
Activity

1. The main stakeholder of a business are its

a) Customers b) employees c)suppliers c)owners

2. Which stakeholder efficiently utilize the resources placed in their care

a)government b) customers c) employees d)consumer

3. Your parents have decided to open a stationery supplies store in an area of the
city where there are many offices and a few secondary schools. Create a graphic
organizer showing at least six stakeholders of the business. Include a description
of the relationship each stakeholder will have with the business
Use the table below to identify the type
of stakeholders in the scenario given at
the beginning of the slide

Type of Name of Stakeholder

Stakeholders
Owner

Employee

Customer

Community
member
Ethical and Legal Issues

Ethics refer to what is right and what is wrong based on

society’s norms and practices. Ethics in business are based
on those principles concerning what is acceptable and what
is unacceptable behavior in business practices. It is
expected that businesses, particularly the leadership of
organizations, will demonstrate in their practices a sense of
moral value, high levels of conduct, and a sense of fairness
and justice in their dealing with their internal and external
stakeholders
Factors that can cause unethical/illegal behavior

 personal gain
 competition,
 cultural pressures,
 greed
Unethical and illegal practices of
businesses
1. Misleading Advertising
Some firms produce misleading advertisements conveying
false information which could result in harm to citizens.
When advertising a company’s product and services, there
should be no attempt to deceive the customer or potential
customers. The quality of the product or service must be
according to the anticipated standards based on the
advertisements
Unethical and illegal practices of
businesses

2. Money laundering
Firms may engage in money laundering where
they earn incomes through illegal means and
get this income into the banking system.
This distorts national income figures
Unethical and illegal practices of
businesses

3. Unethical disposal of waste

Some firms pollute rivers and seas by
dumping their wastes in them; They pollute
air and soil as well. This has a negative effect
on the quality of food, water, and air, thus
posing serious health threats
4. Withholding taxes
This cheats the government of revenue that it needs to
finance/pay for the services provided for the citizens of the
country. Some firms falsify invoices so as to pay less tax or
use dubious accounting methods to understate incomes to
cheat the government out of revenue This results in poor
quality of services such as health, education, and security
and generally a poor standard of living for the citizens
Consequences of unethical and illegal
practices
 Loss of sales
 loss of reputation
 loss of important contracts
 loss of lives and endangering of the health and lives of employees
 negative publicity in international community
 governments may revoke licenses’
 loss of credit facility and inability to get a loan.
How can entrepreneurs ensure that their
business develop a culture of ethics
• Treat all stakeholders with respect
• Be transparent in all business deals activities
• Being proactive in dealing with ethical matters
• Be proactive in dealing with ethical matters
• Develop a sense of integrity and accountability
in business practices
• Engage in proper management
Careers in the Operation of a business

Advertising and public relations, compliance officer,

strategic planner, educators- online and face to
face, information officer, entrepreneurs, resource
personnel, web designer, web planner and software
developer
Advertising

Advertising managers are in charge of creating and placing

advertisements; and public relations managers use subtler methods to
get the word out. Of course, the roles of these professionals overlap. An
advertising manager is someone who plans and directs the promotional
and advertising campaigns of companies in order to generate interest in
a product or service. They work with art directors, sales agents, and
financial staff members in order to develop and execute these
campaigns, and will often act as liaisons between agencies and clients
Public Relations

Public relations specialists create and

maintain a favorable public image for the
organization they represent. They craft
media releases and develop social media
programs to shape public perception of their
organization and to increase awareness of its
work and goals.
Compliance officer

A compliance officer’s work centers on the three key areas

of inspection, complaint processing, and legal review one of
their primary responsibilities is to make sure that a
corporation, business, or other entity is complying with both
internal and external rules governing how things should be
done. The best way for them to make this determination is
to closely inspect what goes on each day. This can happen
either through constant observation or intermittent, random
sampling.
Strategic planner

Strategic Planning consists of gathering

information both from internal and external
sources, analyzing all the gathered
information and then organizing it in such a
manner that it leads to growth and
profitability of the company despite of rising
competition and constant change.
Information Officer

An information officer organizes, evaluates, and distributes

information in different formats within and outside a company
or organization. This person typically serves as the
spokesperson in interactions with the public and media.. The
person filling this job typically monitors current events and
determines the best response when an event occurs that
impacts the agency. He or she usually promotes the
organization's actions through press releases, press
conferences, and written material. An information officer
commonly designs and updates the agency’s Web site as part
of his or her duties
Educator and Web designer

 Educator
An educator is a person who helps others to acquire
knowledge, competences or values.
 Web designer
Web developers design and create websites. They are
responsible for the look of the site. They are also responsible
for the site’s technical aspects, such as its performance and
capacity, which are measures of a website’s speed and how
much traffic the site can handle. In addition, web developers
may create content for the site.
Software developer

A software developer is responsible for

researching, designing, programming, and
testing of computer software. Other job
titles which are often used with similar
meanings are programmer, software analyst,
and software engineer. Maintain the design
and maintenance of software system.
Web Designer

Create attractive and functional

websites for clients. A web designer
creates websites and web pages that
show off their clients' businesses to the
largest number of potential customers
possible.
Resource personnel

A resource person is one who has

knowledge, relevant skills, competence
and expertise to give a talk, guidance or
first-hand info in a given subject or
area. They are often persons who are
well versed with the subject matter.
Web planner

Planning is the process of choosing among competing

opportunities for communication so that you can set overall
goals for a web. As a web planner, you need to anticipate the
skills and resources needed for developing, constructing,
deploying, and operating the web. For example, if a web's
design includes a specification for forms (a feature
supported by HTML), you should note that web implementers
should have skills in HTML forms as well as CGI (Common
Gateway Interface) programming.