1.5 Stakeholders – Business Stakeholders
What is a Stakeholder? 🤔
A stakeholder is anyone who has a direct or indirect interest in what a business does. Think of a stakeholder as a fan of a sports team – they care about how the team performs, even if they don’t play on the field. In business, stakeholders can influence or be influenced by the company’s decisions.
Types of Stakeholders 👥
- Customers – the people who buy the product or service.
- Employees – those who work for the company.
- Suppliers – provide raw materials or services.
- Shareholders/Investors – own a part of the business.
- Government & Regulators – set rules and tax policies.
- Community – local residents and organisations affected by the business.
- Competitors – other businesses in the same market.
Internal vs External Stakeholders 🔄
| Category | Examples |
|---|
| Internal | Employees, Managers, Shareholders |
| External | Customers, Suppliers, Government, Community |
Why Stakeholders Matter 🎯
- Decision‑Making – Stakeholder input helps shape company strategy.
- Reputation – Positive stakeholder relationships build trust.
- Profitability – Satisfied customers and employees increase sales and productivity.
- Risk Management – Understanding stakeholder concerns can prevent crises.
Real‑World Example: A Local Café ☕️
- Customers want tasty coffee and friendly service.
- Employees need fair wages and a safe workplace.
- Suppliers supply beans and pastries.
- Community benefits from a cozy meeting spot.
- Government ensures health and safety regulations are met.
By listening to each group, the café can grow while keeping everyone happy.