STAKEHOLDERS

PROTECTION

PRESENTED BY:
Gurleen Kaur (14)
Jaspreet Kaur (18)
Sourav Sharma(36)
Livjot Kaur (58)
 Contents

 Meaning of Stakeholder;
 Types of Stakeholder;
 Safeguarding Stakeholders;
 Stakeholders claim;
 The MENDELOW FRAMEWORK.
 Meaning of Stakeholders
 A person with an interest or concern in
something specially a business;
 Stakeholders can affect or be affected
by the activities of a business;
 They may have a direct or indirect
interest in the business and maybe in
contact with the business on a daily
basis or may just occasionally.
Definition of
Stakeholder

According to Freeman;
Any group or
individuals who can
affect or be affected by
achievement of an
organizations
objectives is known as
stakeholder.
 Types of Stakeholders

INSIDE STAKEHOLDERS
(Internal)

OUTSIDE STAKEHOLDERS
(External)
 INSIDE STAKEHOLDERS

Inside Stakeholders are people whose

interest in a company comes through a
direct relationship.
 Categories of Inside
Stakeholders

 Shareholders
 Managerial employees
 Non-managerial employees
 Outside Stakeholders

Outside stakeholders are individuals or

groups outside a business or project
but who can affect or be affected by
the business or project
 Categories of outside
Stakeholders

 Customers
 Suppliers
 Government
 Unionized employees
 Local communities
 Safeguarding Stakeholders
 Recognition of the rights of
stakeholders
 Redressal of violation of their rights
 Access to organization’s information
 Free to communicate any concern
regarding unethical issues and their
right should not be compromised
 Effective corporate governance should
be complemented by effective
framework of insolvency
 Stakeholders ‘CLAIMS’
 A stakeholder makes demands of an
organization.
 Some shareholders want to influence what
the organization does (those stakeholders
who want to affect) and the others are
concerned with the way they are affected
by the organization.
 Some stakeholders may not even know
that they have a claim against an
organization, this brings us to the issue of..
 Direct Stakeholders Claims
 Direct stakeholder claims are made by
those with their own ‘voice’. 
 These claims are usually unambiguous,
and are made directly between the
stakeholder and the organization.
 Stakeholders making direct claims will
typically include:
Trade union, shareholders, employees,
customers, suppliers.
 Indirect Stakeholders
Claims
Indirect claims are made by those
stakeholders unable to make the claim
directly because they are, for some reason,
inarticulate or ‘voiceless’.
• This does not invalidate their claim however.
• The claim of an indirect stakeholder must be
interpreted by someone else in order to be
expressed, and it is this interpretation that
makes indirect representation problematic.
The MENDELOW
FRAMEWORK
References
Google images
Wikipedia
Slideshare.net
acowtancy.com
Thank you