STAKEHOLDERS
OF BUSINESS
Owners or shareholders are the main
stakeholders. They have invested money in
the
business (their ‘stake’) and they look for a
return on their investment in the form of
dividends and an increase in the value
(appreciation) of their shares in the
business.
But they have an important role to play,
including providing the resources that are
needed, employing suitable workers and
ensuring those workers are provided with
safe working conditions and are paid a fair
wage.
Employees are stakeholders
because they are dependent on the
business for their
jobs and incomes. Their role is to
work efficiently to carry out tasks
to achieve the
business’ objectives. When spending
their wages, employees are
contributing to the
economy, and so their stakeholding
has even wider implications.
The local community has several
interests in businesses; it sees the
firm as a local
employer, thus adding to the
wealth of the community both
locally and nationally.
The community also hopes that the
business will help to develop and
protect the
local environment.
Customers of the business are also
stakeholders. They are dependent on
the business
for their supplies of finished goods,
raw materials or services, and rely
on them to
supply them at an economic price, on
time and in good condition. And the
business,
of course, relies on their customers
to buy from them as this is what
they are in
business for.
Suppliers to the business are
stakeholders because they will
want the business to be
successful and continue to buy
from them as this increases their
own potential to
survive and make a profit. Their
role is also to provide good quality
supplies to the
business at the right time and at
the right price.
Government is also a stakeholder in
a business, as the business pays both
local and central taxes. The fact
that the business employs people
also further supports government
aims by reducing unemployment and
creating income tax. Many businesses
also sell goods and services to other
countries through overseas trade
(exports).
This contributes to the whole country’s
balance of payments and it brings
in foreign currency that adds to the
national wealth. Government also has a
role to
play in exerting influence that
regulates the ethical behaviour of
business activities, if
necessary creating legislation.
 STAKEHOLDERS
OF BUSINESS CONT'D
Pressure groups refer to a section of society
that has an interest in what the firm
does and who may want to influence the firm in
some way. For example, a union
will want to influence the firm to gain the best
wages it can for its members. Other
pressure groups may want to influence the
business in relation to protection of the
environment, or to support animal welfare
issues.

Your school is a stakeholder of local businesses too. Schools may

be supported by local businesses in some way; businesses
sometimes make generous donations of gifts or money to schools.
Schools may send their students to them for work
experience or SBA research, and they would hope that in due
course their pupils will be rewarded for their studies by
obtaining employment with them. Schools
also have an interest in local firms because businesses
bring prosperity to the area, perhaps employing the
parents of their students, but businesses may also cause
local pollution and educators will want to discourage this.