Friday 19 October 2012

WHAT IS A STAKEHOLDER? - INTRODUCTION

What is a Stakeholder? 

A stakeholder is anyone in a business who has an interest and an influence on a business and somebody who is involved in the business. They include:


  • OWNERS - People who own and have invested money into the business 
  • MANAGERS - People who run the business 
  • WORKERS - People who work in the business 
  • CUSTOMERS - People who buy the goods and are given the service 
  • SUPPLIERS - People who sell products, raw materials or give a service to the business 
  • LOCAL COMMUNITY - These people provide employees and customers to the business therefore they gain employment and also benefit from the services provided 
  • GOVERNMENT - Pass legislation that affects the business, collects taxes from the business and the employees. Also they give planning permission to the business

Internal Stakeholders 

Internal stakeholders are groups within a business which have an influence. For example: owners, managers and workers. 

External Stakeholders 

External stakeholders are groups outside a business which also have an influence. For example: The community, government, suppliers and customers. 



Different stakeholders have different interests – for example, the employees may want a pay rise. If the owners give the employees a pay rise it would mean less profit for them or it might mean that they cannot afford to introduce a new product, as they won’t have enough profit to re-invest.

The owners of the business may want to expand the business or use the premises for different purposes; the local community may not want this.  It might create noise and nuisance for local people or use land that they wanted to be used for something else such as for building new houses on. 

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