Stakeholders: The Key Players in Business Success
- Jojo is the CEO of a company launching a new product.
- Who do you need to consider?
- Employees, customers, suppliers, and even the local community.
These are your stakeholders, individuals or groups with an interest in your business activities.
Stakeholders
Stakeholders are individuals or groups who are affected by or have an interest in a business's activities.
Internal Stakeholders
Internal stakeholders
Internal stakeholders are individuals or groups directly involved in the organization and its operations. They have a direct interest in the business’s performance and decision-making.
Employees
- Roles: Perform assigned tasks, collaborate with colleagues, and contribute to business operations.
- Objectives: Meet performance targets, earn salaries and benefits, and develop skills for career growth.
- Responsibilities: Maintain productivity, follow company policies, and uphold workplace ethics.
A software developer aims for a competitive salary and flexible working hours while ensuring code quality and meeting deadlines.
Managers
- Roles: Oversee operations, make strategic decisions, and lead teams.
- Objectives: Achieve business targets, earn bonuses, and advance careers.
- Responsibilities: Ensure team performance, manage resources, and maintain ethical standards.
A sales manager focuses on meeting quarterly sales targets while motivating the team and maintaining customer relationships.
Owners/Shareholders
- Roles: Provide capital and make high-level decisions.
- Objectives: Maximize profits, increase share value, and ensure business growth.
- Responsibilities: Support management, reinvest profits, and uphold corporate governance.
A shareholder in a tech company expects dividends and transparency in financial reporting.
External Stakeholders
External stakeholders
External stakeholders are individuals or groups outside the organization who are affected by its activities or have an interest in its performance. They do not directly work for the business but can influence or be influenced by its actions.
Customers
- Roles: Purchase products or services.
- Objectives: High-quality products, reasonable prices, and excellent service.
- Responsibilities: Provide feedback and pay for purchases.
A customer buying a smartphone expects durability and after-sales support.
