Stakeholders in Business: Understanding Their Interests and Expectations

Classified in Economy

Written at March 26, 2024 on English with a size of 4.36 KB.

Stakeholders in Business

Have a monetary or nonmonetary interest in an organization or entity.
Look for high profit, dividend, and long-term growth, as well as a positive corporate image.
Example: Mr. XYZ is an owner of company ABC and expects a financial return.

Companies build a number of small, loyal relationships with suppliers and associates.
This enables each business to develop shared goals, visions, and strategies.
Trade buyers and sellers can effectively collaborate to deliver the best value to end customers, which is beneficial to each side.
Example: Carrefour Market is a distributor and supplier for Nestle products. Lulu aims for satisfactory transactions and revenue from purchases.

Expect fair working conditions, a non-discriminatory work environment, and to get paid and have some satisfaction.
Additionally, employee involvement has become increasingly prominent, and many employees want a voice in important business decisions.
When a company is doing well, employees' jobs are secure. When the business faces adverse conditions, there is a risk that the company would retrench some of its employees. Therefore, employees try to be cautious and work diligently to maintain their jobs.
When the company is doing well, there also is a potential for rewarding employees, such as bonuses and promotions.
Example: Apple’s employees work hard to achieve the company’s goals and they aim for good payment and satisfaction.

Are one of the most direct external stakeholders that a company must consider, simply because customers bring revenue to the organization.
Attracting, retaining, and generating loyalty from core consumer markets is critical to long-term financial success.
Customers expect high-quality goods and services.
Example: Toyota Customers like buying Toyota for its high-quality goods, value, and the service they get.

These individuals have loaned their money to the company -- either as cash or by supplying raw materials for production.
The company pays creditors interest on their loans, regardless of whether the company makes profits.
Creditors often hold the company's assets for security.
Example: If Company XYZ issues bonds; the bondholders become creditors senior to Company XYZ's shareholders.

Have the power to set the organization's goals and lead and influence the employees to achieve these goals.
In order to achieve these goals, they expect the organization to be efficient and effective.
Efficient by having the amount of resources to achieve the goals, effective to the degree of achieving these goals.
Example: If management has efficiency and effectiveness, they can ensure the long or short goals for the organization.

Needs to know the exact financial condition of the business to calculate the amount of taxes owed.
They want to receive tax revenues from profitable firms, direct the operations of the business for the benefit of the nation, and assist business with national and local policies.
Example: Abu Dhabi Government is a stakeholder in Mubadala. It aims for fair competition and obedience of laws and regulations.

Is when employees of the same sector join together to ensure the welfare of all employees.
They make sure employees are being paid fairly, have good working conditions, and are treated fairly.
They expect the organization to pay the worker and give them benefits.
Negotiate with the organization through elected representatives.
Example: The union can initiate a strike to get what they want.

A group of people interacting in the environment.
They are interested in road building, public health, safety, jobs, etc.
Their objective is to benefit from the employment business creates.
Example: Community in UAE will expect contribution to community affairs and good corporate citizenship.

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