Stakeholders of the Business

Stakeholders of the Business

Every business has several stakeholders

Every business has several stakeholders. Image credit modernservantleader.com

ZIMSEC O Level Business Studies Notes: Stakeholders of the Business

  • Many people are involved in running a business.
  • Some have direct interest while others have indirect interest in the running of the business.
  • These individuals or groups are known as stakeholders.
  • At any given time and during each and every business operation each stakeholder group will have an aim they are seeking to fulfil and this aim might put them in conflict with another stakeholder group which might have a competing aim.

Stakeholders-are people who affect and are in turn affected by the business whether directly or
indirectly.

  1. Owners (Shareholders) – They invest capital in the business and get profits from the business.
    Their aim or objective is to make profit although they may have other aims such as growth of the business, survival etc.
  2. Workers (Employees) – Employees of the business who give in their time and effort to make a
    business successful. Their main objectives are job security and job satisfaction as well as a satisfactory level of pay.
  3. ManagersРEmployees of the business who manage a business. They lead and control the workers to achieve organizational goals. Their main objectives are High salaries, Job security, Status and growth of the business.
  4. Consumers– These are the people who buy the goods and services of the business. Their main objectives are to get Safe and reliable products, value for money, proper after sales service from the business.
  5. Government– Government manages the economy. The government charges a tax from the
    business and also monitors the working of businesses in the country. Their main objectives are to have Successful businesses, employments to be created, more taxes, follow laws.
  6. The Community– are all the people who are directly or indirectly affected by the actions
    of the business. They expect more jobs, environmental protection, socially responsible products and actions of the business

External and Internal Stakeholders

stakeholders-min

Internal and external stakeholders. Image credit boundless.com

  • Stakeholders can be put into two groups:
  • External stakeholders and
  • Internal stakeholders.
  • External stakeholders are those stakeholders that are found outside the business while
  • Internal stakeholders are those that are found within the business and are often members of the business itself or work for it for example employees.

To access more topics go to the O Level Business Studies Notes Page.

By |2018-07-23T11:36:38+00:00December 8th, 2015|Notes, O Level Business Studies Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Stakeholders of the Business

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
%d bloggers like this: