Internal and External stakeholders and Stakeholder Objectives - 3.4.3

Stakeholder - is any individual or group with an interest in the actions and decision making of the business.

A SHAREHOLDER IS A STAKEHOLDER

INTERNAL STAKEHOLDER	EXTERNAL STAKEHOLDER
Employees	Customers
Managers	Suppliers
Owners	Shareholders
Shareholders	Government
	Local community
	Society
	Creditors (owes money to a business)

STAKEHOLDER	MAIN INTERESTS
Shareholders/owners	Return on investment and profits and dividends Success and growth of the business Proper running of the business
Managers/employees	Rewards, including basic pay and other financial incentives Job security and working conditions Promotion opportunities and job satisfaction and status – motivation, roles and responsibilities
Customers	Value for money Product quality and customer service
Suppliers	Continued, profitable trade with the business Financial stability – can the business pay its bills?
Banks and other finance	Can the business repay amounts loaned or invested? Profitability and cash flows of the business Growth in profits and value of the business
Government	The correct collection and payment of taxes (e.g. VAT) Helping the business to grow – creating jobs Compliance with business legislation
Society	Success of the business – particularly creating and retaining jobs Compliance with local laws and regulations (e.g. noise, pollution)