MAJOR & MINOR STAKEHOLDERS OF AN ORGANIZATION

In an organization, stakeholders can be categorized into major stakeholders and minor

stakeholders based on their level of influence and impact on the organization. The
categorization may vary depending on the specific organization and industry, but here is a
general overview:

Major stakeholders:
Shareholders/Owners: Shareholders are individuals or entities that own shares or equity in the
organization. They have a financial stake in the company and are often concerned with the
organization's profitability, dividend payments, and long-term value creation.
Customers/Clients: Customers are individuals or entities that purchase the organization's
products or services. They play a critical role in driving revenue and are crucial for the
organization's success. Meeting customer needs and expectations is essential for maintaining a
loyal customer base.
Employees: Employees are individuals who work for the organization. They contribute their
skills, knowledge, and efforts to achieve organizational goals. Employee satisfaction,
engagement, and well-being are important factors in maintaining productivity, innovation, and
overall organizational success.
Management/Executives: The management team consists of top-level executives who make
strategic decisions, set goals, and lead the organization. They are responsible for the overall
direction, performance, and success of the organization. They play a key role in balancing the
interests of various stakeholders and maximizing shareholder value.
Suppliers and Business Partners: Suppliers and business partners provide goods, services, or
resources necessary for the organization's operations. They contribute to the organization's
value chain and supply chain efficiency. Maintaining positive relationships with suppliers is
crucial for ensuring the availability, quality, and cost-effectiveness of inputs.

Minor stakeholders:
Local Communities: Local communities may be affected by the organization's operations,
particularly if they reside in the vicinity of the organization's facilities. They may be concerned
about environmental impact, job creation, community engagement, or other social and
economic effects.
Government and Regulatory Bodies: Government entities and regulatory bodies establish and
enforce laws, regulations, and policies that impact the organization's operations. Compliance
with legal requirements and maintaining positive relationships with relevant authorities are
important for organizational stability and reputation.
Financial Institutions: Financial institutions such as banks and creditors provide financing and
financial services to the organization. They may have an interest in the organization's financial
stability, repayment of loans, and overall creditworthiness.

Notes for Academic Purpose Only

Industry Associations: Industry associations represent the interests of organizations within a
specific industry. They may advocate for industry-wide issues, set standards, and provide a
platform for networking and collaboration among industry players.
Non-Governmental Organizations (NGOs) and Activist Groups: NGOs and activist groups can
influence public opinion and advocate for specific causes or concerns related to the
organization's activities. They may focus on environmental sustainability, social justice, labor
rights, or other areas.

CONFLICTS AMONGST STAKEHOLDERS

In any organization, there are multiple stakeholders who have different interests, goals, and
priorities. These stakeholders can include employees, customers, shareholders, suppliers,
government agencies, local communities, and more. Due to these diverse interests, strategic
conflicts can arise among stakeholders. These conflicts typically revolve around the allocation
of resources, decision-making processes, and the pursuit of different objectives.
Examples:
Employees vs. Management: Employees may demand higher wages, better working
conditions, and improved benefits, aiming to maximize their well-being and job satisfaction.
On the other hand, management may focus on cost control, productivity, and profitability, often
leading to conflicts over salaries, promotions, and employee rights.

Shareholders vs. Management: Shareholders primarily seek to maximize their return on

investment. They may want management to prioritize short-term profits, dividend payments,
or stock price appreciation. Conversely, management might prioritize long-term growth,
investment in research and development, or other strategic initiatives that could reduce
immediate profitability.

Customers vs. Company: Customers want high-quality products or services at affordable

prices, along with excellent customer support. However, companies may face limitations in
meeting these demands due to cost constraints, technological limitations, or market
competition. Conflicts can arise when customers feel their needs are not being adequately
addressed by the company.

Government vs. Business: Governments often regulate businesses to protect public interests,
ensure fair competition, and enforce compliance with laws and regulations. However,
businesses may perceive these regulations as burdensome, costly, or hindrances to their
operations. Disagreements can arise regarding environmental regulations, taxation, labor laws,
or industry-specific regulations.

Notes for Academic Purpose Only

Local Communities vs. Company: Companies may face conflicts with local communities
regarding environmental impacts, land use, noise pollution, traffic congestion, or other social
concerns. Community members may demand more sustainable practices, community
engagement, or compensation for perceived negative externalities caused by the company's
operations.

Notes for Academic Purpose Only