Tesco have an interest in customers because they need customers to buy their products and services so that they can make money. About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since Associates, guests, franchisees, shareholders, communities, suppliers, industry organizations, government and the wide range of organizations engaged in the advancement of env … ironmental and social sustainability. Generally, stakeholders are external. In a corporation , as defined in its first usage in a internal memorandum at the Stanford Research Institute , a stakeholder is a member of the "groups without whose support the organization would cease to exist".
He has been a college marketing professor since Kokemuller has additional professional experience in marketing, retail and small business. Skip to main content. Customers Customers are one of the most immediate external stakeholders that a company must consider.
Communities and Governments Communities and governments are closely tied external stakeholders. Suppliers and Partners Suppliers and business partners have become more critical stakeholders in the early 21st century. Creditors Businesses commonly use lenders to finance business ventures, building and asset purchases and supply purchases. Engaging with Our Stakeholders. About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since Accessed 15 October Who are the External Stakeholders of a Company?
Small Business - Chron. Depending on which text editor you're pasting into, you might have to add the italics to the site name. Kokemuller has additional professional experience in marketing, retail and small business. Skip to main content. Shareholders Traditionally, shareholders have been given the most attention of any stakeholder group by public companies.
Customers and Community The early 21st century business environment has led to more emphasis on building long-term relationships with core customers. Employees A changing viewpoint of employees is a primary consideration of the prominent corporate social responsibility CSR business ideology. Business Partners Many businesses rely strongly on partners that help them provide the best value for their customers.
References 3 As You Sow: About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since Accessed 15 October Different Stakeholders in Business. Small Business - Chron. They might well have put forward the seed capital which we need to get started so their needs are important. Ultimately the board, acting on behalf of the shareholders, can replace the CEO and the executive team. However, provided we are broadly on plan in terms of revenues and profit the shareholders are generally satisfied and will leave us alone.
They will only take action when things are going badly wrong so we do not need to always act to please them. Suppliers, distributors and other business partners.
We need to collaborate with our partners to run the business. Many have essential skills that we lack. It is best to build good long-term relationships. However, the partners also have their own agendas and most can be replaced if they underperform or a better partner appears. We want to be a good citizen with healthy links to the local community.
We want to be seen as a responsible employer who is providing a good place to work. This is important but is clearly a lower priority than those above.
National Government and regulatory authorities. These are less important stakeholders but we want to keep on the right side of them. We want to be compliant with regulations and avoid disputes and prosecutions. This order of priority will help us to resolve conflicts. No; we should hire the best people we can afford in order to deliver better customer service. It might hurt profit in the short term but should deliver better growth and profits long term.
The answer clearly is yes. The shareholders outrank the national government in priority. If it is necessary for survival then we have to take the difficult step of making employees redundant.
We cannot serve the customers if we cannot survive. Difficulties surface when we alter the priority list, e. Or when the employees are seen as more important than the customers. We sometimes see this in some offices where staff are too busy with their own affairs to look after the customer. A big problem arises if item 2 on the list above is split and becomes 2a senior executives and 2b ordinary employees.
This can lead to a situation where the executive team puts its own requirements first — especially in terms of bonus, stock options and other monetary rewards. We have seen recent examples of how divisive and provocative this can be.
We want staff at all levels from the lowest to the most senior to act as a team, to be motivated and well rewarded — but not overpaid. If we overpay then we increase our cost base unnecessarily and put at risk price competitiveness in the marketplace and profitability. It is essential to strike the right balance between the needs of the different stakeholders, but some are more important than others.
If we can be clear about priorities in advance then it will help us to resolve the tricky conflicts that will arise sooner or later. I contend that Mr Drucker is incorrect, a CEO and his executive team should not have to balance the demands of the stakeholders, their role is solely to meet the rights of the stockholders which will then allow them to decide how profits from investment can be used to benefit others — therefore there is no need to consider what the pecking order of these stakeholders are.
Stakeholder Concept Theory developed by Mr R Edward Freeman would have us believe that businesses have a duty to care for all stakeholders ie those that are affected by the business itself.
Task 2 – Stakeholders. Customers Customers are external stakeholders because even though they affect the day to day running of the business, they do not work within the business. Customers are one of the most immediate external stakeholders that a company must consider. For retailers, consumers are customers. Oct 01, · A stakeholder in a business is anyone that has an interest of some kind in the business. In a school, some of the main stakeholders would .
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