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STAKE HOLLDERS - Coggle Diagram
STAKE HOLLDERS
EXTERNAL stakeholders
Customers include both individuals and other businesses that purchase the output of the organisation. They demand good service and quality products that are also safe and are sold at a reasonable cost. Customers may also be sensitive to the reputation of the company and the impact of its practices on society and the environment.
Suppliers are the individuals and businesses that sell goods and services to another organisation. They want to be paid fair and reasonable prices for these inputs. They also wish to maintain a stable business relationship with the companies they supply in order to ensure a reliable market for their goods. Suppliers are therefore concerned about the health and continued existence of the companies to which they sell.
Governments regulate organisations in order to protect the public interest; governments also enforce laws and reprimand companies when necessary. In addition, governments, particularly local governments, are dependent upon companies to provide tax revenues and employment.
Unions exist to protect employees’ livelihoods and rights, and as such are important stakeholders for many organisations. Unions usually represent employees in many different firms; they may have more resources to defend employees’ interests than the employees in a single firm acting alone.
Banks lend organisations funds so they can invest and carry out their operations. Banks want to be sure that these loans are paid back, with interest, on schedule. They will therefore closely monitor the organisation's liquidity and solvency using financial accounts
Society as a whole, as well as the environment, is affected by corporate behaviour, as we learned in the unit on corporate social responsibility. When society’s interests are not adequately defended by government, pressure groups may step in to make sure corporate behaviour does not adversely impact the planet and its residents.
Competitors, unlike the previous stakeholders, a company’s competitors do not have an interest in its success. However, they are greatly impacted by its practices. At a minimum, companies expect their competitors to engage in fair competition by adhering to laws and ethical business practice
CONFLICT
Managers and employees. Management may wish to maximise productivity, while employees may prefer to work less or under less stressful condition s
Shareholders and managers. Managers may sometimes look after their own interests rather than those of the firm. They may engage in activities that improve their personal reputation or remuneration without improving profits .
Shareholders and the government. Government expects businesses to pay fair taxes, according to the law of the country, but shareholders may pressure management to reduce the company’s tax burden through sophisticated accounting and legal schemes.
Managers and unions. Managers may oppose unions’ intervention in the relationship between managers and employees at a particular firm. This is because unions can assist employees in obtaining better wages and benefits from management than employees might otherwise negotiate on their own.
Customers and suppliers. Customers demand high quality and low prices, which is in conflict with suppliers’ interest in being paid fairly. This conflict is played out between agricultural producers and consumers, with supermarkets in the middle coming under pressure from both stakeholders.
Pressure groups and employees. Pressure groups may oppose certain projects that have the potential to harm the environment. These same projects may benefit the local community in terms of employment.
INTERNAL stakeholders
Managers are the individuals who run the organisation. They are responsible both for setting aims and objectives and making sure they are met.
Employees include individuals who work for the company but who are not responsible for managing other employees. Like managers, employees are motivated by compensation, benefits, job security, and working conditions.
Shareholders are the owners of the company. Shareholders invest in a business in order to receive a return on their investment. They are therefore primarily concerned with the company’s profitability.
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