2:

Prelim Materials:
Stakeholders
Dr. Sihem Bouguila
AMA 2018

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Chapter 2: Stakeholders Interests

 What are stakeholders?

 Types of stakeholders
 Power and influence
 Stakeholder interests
 Conflict and stakeholders

2.8 Stakeholders
What are stakeholders?

 People or organisations with a

special interest in a business.
 They can affect or they are
directly/indirectly affected by the
business and how it operates – both
now and in the future.

2.8 Stakeholders
DEFINITION OF
STAKEHOLDERS
 An individual or group
with an interest in an
organization.

 Any individual or group

who can affect or are
affected by the
achievement of a firms
objective.

2.8 Stakeholders
 STAKEHOLDERS IN
BUSINESS
• Stakeholders in a business are any entity,
person or group of persons who are
effected by the operations of that business
in some way.
• The most obvious stakeholders are
employees, owners, and customers. Other
stakeholders are indirect stakeholders such
as competitors, the neighborhood the
business is in, the government, and the
environment.
2.8 Stakeholders
Types of stakeholders

Customers
Employees
Financiers/ and
creditors managers

Owners
Suppliers Stakeholders and
shareholders

Pressure The local

groups community
NGO The
government
2.8 Stakeholders
Power and influence

 Some stakeholders are

powerful. They can
influence and have an
impact on how the
business operates.
 Some stakeholders have
little power. The business
can virtually i.e. nearly
ignore their views.

2.8 Stakeholders
2.8 Stakeholders
Identify the powerful

Who has the power?

 An individual employee in a large firm
 A bank which has lent a lot of money to a
small firm
 A supplier of a major product, e.g. Microsoft
 A small supplier to a large supermarket
 An important customer of a small firm

2.8 Stakeholders
 Workshop

 Discuss with your colleague the powerful

Stakeholder in the previous example
 ………………………………………………
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2.8 Stakeholders
Stakeholder interests 1

All stakeholders have different types of interests:

 Customers – price, quality, range of supplies,
opening hours, facilities, etc
 Employees – pay, working conditions,
job security
 Owners/shareholders – profit, share price,
dividends
 The local community – road building, pollution,
safety, house values, jobs

2.8 Stakeholders
Stakeholder interests 2

 Government – legal issues, environmental

issues, competition
 Pressure groups – interests of members
and those they represent
 Suppliers – price paid for their supplies,
further orders
 Financiers – profits, return on money
invested, repayments of loans

2.8 Stakeholders
Conflict and stakeholders

Stakeholders with different interests may be

in conflict, e.g.

 Local community against expansion of

business, employees want job security
 Shareholders want high dividends, managers
want to use profits for investment
 Suppliers want high prices for goods they
supply, customers want low selling prices

2.8 Stakeholders
Stakeholder summary

All stakeholders have an interest in a business.

 Different groups have different interests
 Interests may conflict
 Business will be most likely to respond to
the most powerful groups

2.8 Stakeholders
 Assignment

 Select a Bahraini company and draw its

Stakeholders’ network.
 …………………………………………………
…………………………………………………
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2.8 Stakeholders