Understanding Key Stakeholder Groups and Their Expectations

Key Stakeholder Groups and Their Expectations

Understanding the needs and expectations of various stakeholder groups is crucial for business success. Here's a breakdown of major stakeholder groups and what they typically expect:

1. Owners and Investors

   Owners and investors have a financial or other interest in the organization. They generally seek high profits, dividends, long-term growth, and a positive corporate image.

   Example: An owner of company ABC expects a financial return on their investment.

2. Suppliers

   Companies often build strong relationships with suppliers. This fosters shared goals, visions, and strategies. Collaboration between buyers and sellers can deliver the best value to end customers, benefiting all partners.

   Example: Lulu Hypermarket, as a distributor for Nestle products, aims for satisfactory transactions and revenue from purchases.

3. Employees

   Employees expect fair working conditions and a non-discriminatory work environment. Employee involvement in business decisions is increasingly important. Job security, fair compensation, bonuses, and opportunities for promotion are also key expectations.

   Example: Apple employees work hard to achieve company goals and expect good pay and job satisfaction.

4. Customers

   Customers are a critical external stakeholder group. Attracting, retaining, and generating loyalty from core consumer markets is essential for long-term financial success. Customers expect high-quality goods and value.

   Example: Walmart customers appreciate the high-quality goods and value they receive.

5. Creditors

   Creditors loan money to the company, either as cash or by supplying raw materials. They expect to be paid interest on their loans, regardless of the company's profitability. Creditors often hold the company's assets as security.

   Example: Bondholders are creditors to the company that issued the bonds.

6. Management

   Management is responsible for the day-to-day operations of the company. They are expected to make sound business decisions that benefit all stakeholders.

7. Government

   The government needs accurate financial information to calculate taxes. They expect tax revenues from profitable firms, direct business operations for the nation's benefit, and assist businesses with national and local policies. They also expect businesses to obey laws and regulations.

   Example: The Abu Dhabi Government, as a stakeholder in Mubadala, aims for fair competition and adherence to laws and regulations.

8. Community

   The community is interested in factors like road building, public health, safety, and job creation. They expect businesses to contribute to community affairs and be good corporate citizens, benefiting from the employment the business creates.

   Example: Communities in the UAE expect contributions to community affairs and responsible corporate citizenship.