Business – 1.5 Stakeholders – Business stakeholders | e-Consult
1.5 Stakeholders – Business stakeholders (1 questions)
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Answer:
A stakeholder is any individual or group that can affect or is affected by the actions, objectives, and policies of an organisation.
Primary stakeholders are those who have a direct, essential relationship with the business and whose interests are critical to its survival. Examples include:
- Employees – they provide labour and expect wages, safe conditions, and job security.
- Customers – they purchase the company’s products or services and expect quality and value for money.
Secondary stakeholders have a more indirect relationship with the organisation and are not essential for its day‑to‑day operations, though they can influence its reputation and long‑term success. Examples include:
- Local community – interested in environmental impact, employment opportunities, and community investment.
- Trade unions – represent workers’ interests but operate outside the immediate management structure.