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Stakeholder Theory (External Stakeholders (Regulators (Provide an…
Stakeholder Theory
External Stakeholders
Regulators
Provide an oversight function and enforce the rules and regulations designed to enhance corporate accountability
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Suppliers
Provide raw inputs to the production process and will influence the quality and price of the product
Community
Grants companies the right to construct facilities and operate in a given location with provided infrastructure
Consumers
Use exchange of resources and purchasing power to encourage the production of sustainable goods and services
Creditors
Lend money to the company and are ranked first to be paid in the event of a business shutdown such as bankruptcy
Institutional Investors
The capability to influence management and boards through voting rights and using investment decisions
Government
Enact legislation that affects business operations, impose taxes, regulate imports and exports
Individual Investors
A financial stake in the company and desire a reasonable return and market growth, stemming from a need to accumulate wealth
Internal Stakeholders
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Employees
Their jobs and livelihoods are at stake, they expect good working conditions, reasonable pay and benefits
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