Professional Documents
Culture Documents
of Stakeholders
STAKEHOLDER DEFINITION
Corporate Governance
Whom should the
organisation serve?
How should purposes
be determined?
Organisational
purposes
Mission
Objectives
Shareholders
Whom does the
organisation serve?
Business ethics
Which purposes should
be prioritised? Why?
Cultural context
Which purposes are
prioritised? Why?
STAKEHOLDER MAPPING I
To
assist entrepreneurs/managers to
understand the socio/economic/political
context
To identify potential strategies
To identify the orientation of different
stakeholders
To establish socio/economic and political
priorities and trends
STAKEHOLDER MAPPING II
WHY CONSIDER
STAKEHOLDERS?
DIFFERENT TYPES OF
STAKEHOLDER GROUPS
Primary: a firm cannot exist without their
continuing participation
Primary stakeholders include: shareholders &
investors, employees, contractors, customers
& suppliers
Secondary: those who influence or affect or
are influenced/affected by, the corporation, but
they are not engaged in transactions with the
corporation or essential for its survival
Secondary stakeholders include: media, action
groups, government agencies, trade unions,
regulatory authorities
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STAKEHOLDER THEORY
(Donaldson and Preston, 1995)
Takes account of the various needs of the
different interested parties
Stakeholder power is key
Stakeholder interests are not always consistent
Stakeholders are rewarded in different ways
Stakeholders are not affected in the same way
by every strategic decision
Types of Stakeholder
Owners (I)
Shareholders (I)
Managers (I)
Staff or employees (I)
Customers (E)
Suppliers (E)
Community (E)
Government (E)
I = Internal
E = External
Characteristics of Stakeholders
1. Owners and Shareholders
The number of owners and the roles they carry out differ
according to the size of the firm
In small businesses there may be only one owner (sole trader)
or perhaps a small number of partners (partnership)
In large firms there are often thousands
of shareholders, who each own a small part
of the business
Characteristics of Stakeholders
2. Managers:
organize
make decisions
plan
control
are accountable to the owner(s)
Characteristics of Stakeholders
3. Employees or Staff:
Characteristics of Stakeholders
4. Customers:
Characteristics of Stakeholders
5. Suppliers:
Characteristics of Stakeholders
6. Community:
Characteristics of Stakeholders
7. Government:
Characteristics of Stakeholders
7. Government: