Business Stakeholders
A business touches the lives of many people, and they touch it back. Meet the stakeholders, learn what each one wants, and see how they and the business shape each other.
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Everyone with a stake
A business does not exist on its own. Its owners, workers, customers, suppliers and neighbours all have an interest in it, and it affects them too. These groups are its stakeholders. This module is about who the stakeholders are and how they and the business shape each other.
Stakeholder words
Four ideas run through this topic:
What is a stakeholder?
What is a stakeholder?
- Any group with an interest in, or affected by, a business
- Only the person who owns the business
- A wooden post used in fencing
- The cash in the till
Inside and outside
Some stakeholders are part of the business; others are outside it.
What they want
- Shareholders
- Employees
- Customers
- The local community
- Profit and a return on their investment
- Fair pay and secure jobs
- Good quality at a fair price
- Local jobs and a clean environment
It works both ways
A stakeholder is both affected by the business and able to influence it. Employees rely on it for their wages, but they also affect the quality of the work and could go on strike. Always explain both directions: how a group is affected, and how it can affect the business.
Who has a stake?
Which THREE of these are stakeholders of a local bakery?
- The people who work there
- The flour supplier
- The local community
- The weather next week
- A shop on the other side of the world with no link
How they push back
- Employees
- Customers
- A pressure group
- The government
- Can affect quality or go on strike
- Can choose to buy or shop elsewhere
- Can run a campaign against the business
- Can pass laws and set taxes
Handling a decision
Put the steps of making a decision that affects stakeholders in order.
- Identify who the stakeholders are
- Work out how each one is affected
- Notice where their interests conflict
- Make a balanced decision
- Communicate the decision to them
Complete the idea
A _____ is any group with an interest in a business. The owners want profit, while employees want fair _____. A business both affects its stakeholders and is _____ by them. The _____ community wants local jobs. When groups want different things, there is a _____.
True or not?
Tap the TWO statements that are TRUE.
- Employees and the local community are both stakeholders.
- A stakeholder can both affect and be affected by a business.
- Only the owners are stakeholders.
- Stakeholders always want exactly the same things.
- Customers have no influence on a business.
Spot the conflict
Which of these is an example of a conflict between stakeholder groups?
- Shareholders want higher profit while employees want higher pay
- Everyone agreeing to the same plan
- Customers enjoying a good product
- A shop opening on time each morning
The factory plan
A factory owner plans to expand. Think about the stakeholders at each step.
- How might the local community react to a bigger factory?
- The owners want maximum profit and the workers want higher pay. This is an example of what?
- What is a fair way to handle these different interests?
Explain it
A supermarket wants to open a new store in a small town. Explain how different stakeholders would be affected.
- Name three different stakeholder groups
- Explain how each one is affected
- Explain how one of them could influence the business
- Identify a possible conflict between two groups