Stakeholders in a business - Coggle Diagram
Stakeholders in a business
People or groups of people who can be affected by – and therefore have an interest in – any action by an organisation
the view that businesses and their managers have responsibilities to a wide range of groups, not just the shareholders
government and government agencies
employees and their families
special interest group
Responsibilities to stakeholders
Responsibilities to customers
Responsibilities to suppliers
Responsibilities to employees
Responsibilities to local community
Responsibilities to government
Corporate social responsibility (CSR) – an evaluation
CSR distracts from the key role of business activity
CSR is just a form of ‘window dressing’ or public relations spin
CSR is an attempt to get governments to impose fewer controls and restrictions on powerful multinational firms.
can be expensive and might reduce profits in the short run
over a longer period of time, the marketing, public relations and employee motivation benefi ts of CSR policies might pay for themselves and even generate higher profi ts.
Dealing with conflicts arising from different stakeholder objectives
a factory will close in stages rather than immediately to allow workers time to fi nd other jobs – but business costs will fall more slowly
Plans to build a new chemical plant may have to be adapted to move the main site away from a housing estate to protect the local community – but the new site might be more expensive.
Th e introduction of 24-hour flights at an airport – to the benefit of the airlines and passengers – may only be accepted if local residents are offered sound insulation in their homes, paid for by the airport and airlines.
Impact on stakeholders of changing business objectives
Employees’ jobs will be lost and customers will have less choice
Owners’ returns might be safeguarded in the future by the decisions
Lenders might be reassured that action is being taken to stem losses that should mean they are repaid the loans they have given.