Types of Stakeholders
Types Business’s responsibilities to Stakeholders
Employee  Timely and regular payment of wages and salaries
 Proper working conditions and welfare amenities
 Opportunity for better career prospects
 Job security as well as social security like group insurance,
pension, retirement benefits
 Better living conditions like housing, transport, canteen
 Timely training and development
Suppliers  Giving regular orders for purchase of goods
 Dealing on fair terms and conditions
 Timely payment of dues (Pay fair prices and pay invoices
promptly
 Avoid excessive pressure on smaller or weaker suppliers to
cut prices
Customers  Products and services must be able to take care of the
needs of the customers
 There must be regularity in supply of goods and services
 Price of the goods and services should be reasonable and
affordable
 Giving customers assurances about quality, delivery dates,
service levels and continued supplies of vital components
and materials
 Not to break the laws on consumer protection and accurate
advertising
Competitors  To compete fairly and within the law
Responsibilities/Functions
 Contributes labour and expertise
 Usually hired to perform specific duties which are packaged into a
job
 Employee loyalty and low labour turnover
 Maintain stable employment in firm
 Receive fair pay for work
 Work in safe, comfortable environment
 Suppliers are businessmen who supply raw materials and other
items required by manufacturers and traders
 Provide the resources needed
 Timely delivery of quality materials
 Suppliers need the business to continue to buy their products in
order to maintain their own profitability and long term financial
health
 “Payment holidays” may be offered to struggling businesses, if
this means keeping them as customers
 Known as a buyer or purchaser of a good, service, product or idea
 Customer loyalty and repeat purchases
 Good publicity when customers give “word of mouth”
recommendations; positive customer feedback helps to improve
goods and services
 In a world of increasing free trade and international competition,
it is essential to satisfy customers’ demands in order to stay in
Business in the long term.
 Avoid legal action as a consequence of uncompetitive practices
  It is not a responsibility of business to provide details of its
strategic plans to competitors
 Not to offer to customers heavy discounts and/or free
products in every sale
 Not to defame competitors through false or ambiguous
advertisements
Shareholders  Annual accounts presented to shareholders
 Proper use of capital
 To provide accurate and timely information
 Ensure growth and appreciation of owner’s capital
 Provide regular and fair return on owners capital
Finance  Payment of Interest and repayment of loans as required
Provider  To raise public image of the company
Government  Payment of taxes
 Obeying rules and regulations
 To generate employment
 To provide assistance in the field of developmental
research on education, medical science, technology etc
 Opportunities for co-operations and joint ventures-as long as
these do not contravene competition laws.
 Shareholders will be reluctant to sell shares and this will help
avoid share price falls
 Shareholders may be willing to buy new issues of shares to invest
further capital in the company
 More willing to provide financial support in the future
 Treat businesses legally under the law
 Prevent unfair competition
 Establish trading relations with other countries to facilitate
international trade
 Increase social welfare