{"id":5636,"date":"2016-06-07T21:15:39","date_gmt":"2016-06-07T21:15:39","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=5636"},"modified":"2019-01-05T01:41:18","modified_gmt":"2019-01-05T01:41:18","slug":"reading-business-stakeholders-2","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/reading-business-stakeholders-2\/","title":{"raw":"Reading: Business Stakeholders","rendered":"Reading: Business Stakeholders"},"content":{"raw":"\"Photo<\/a>\r\n

What Is a Stakeholder?<\/h2>\r\nA stakeholder<\/strong> is an individual or group that has a legitimate interest in a company, organization, or business; the Stanford\u00a0Research Institute defines stakeholders as \u201cthose groups without whose support the organization would cease to exist.\u00a0Stakeholders can affect or be affected by the actions (or inactions) of a business, and they can exist both within and outside of a business.\r\n\r\nThe impact of a\u00a0business on\u00a0its stakeholders is a bit like the effect of dropping a stone\u00a0into a pond. The decisions and actions of\u00a0the business\u00a0have\u00a0a ripple effect that can extend beyond the pond and even reach those who are standing far away on the shore.\r\n
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Internal Stakeholders<\/h3>\r\nInternal stakeholders<\/strong> are groups or people who work directly within the business, such as managers, employees, and owners. Managers and employees want to earn high wages and keep their jobs, so they have a vested interest in the financial health and success of the business. Owners want to\u00a0maximize the profit the business makes as compensation for the risks they take in owning or running a business.\r\n
\r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"600\"]\"All Figure 1. The picture shows the typical stakeholders of a company. The stakeholders are divided into internal and external stakeholders.[\/caption]\r\n\r\n<\/div>\r\n

External Stakeholders<\/h3>\r\nExternal stakeholders<\/strong> are groups outside a business or people who don't\u00a0work inside\u00a0the business but are affected in some way by\u00a0the decisions and actions of the\u00a0business. Examples of external stakeholders are\u00a0customers, suppliers, creditors, the local community, society, and the government. Customers<\/strong> want the business to produce quality products at reasonable prices. Shareholders <\/strong>have an interest in business operations since they are counting on\u00a0the business to remain profitable and provide a return on their investment in the business.\u00a0Creditors <\/strong>that supply financial capital, raw materials, and services to the business\u00a0want to be paid on time and in full. Federal, state, and local governments\u00a0<\/strong>need businesses to thrive in order to\u00a0pay taxes that support government services such as education, police, and fire protection. The local community<\/strong> has a stake in the business because\u00a0it provides jobs,\u00a0which\u00a0generate economic activity within the\u00a0community. Society<\/strong>\u00a0as a whole (as well as the local community) is concerned about the impact that business operations have on the environment in terms of\u00a0noise, air, and water pollution. Society also has an interest in the business with regard to the safety of the goods and services produced by\u00a0the business.\u00a0Suppliers<\/strong> need\u00a0the business to continue to buy their products in order to maintain their own profitability and long-term financial health.\r\n\r\n<\/div>","rendered":"

\"Photo<\/a><\/p>\n

What Is a Stakeholder?<\/h2>\n

A stakeholder<\/strong> is an individual or group that has a legitimate interest in a company, organization, or business; the Stanford\u00a0Research Institute defines stakeholders as \u201cthose groups without whose support the organization would cease to exist.\u00a0Stakeholders can affect or be affected by the actions (or inactions) of a business, and they can exist both within and outside of a business.<\/p>\n

The impact of a\u00a0business on\u00a0its stakeholders is a bit like the effect of dropping a stone\u00a0into a pond. The decisions and actions of\u00a0the business\u00a0have\u00a0a ripple effect that can extend beyond the pond and even reach those who are standing far away on the shore.<\/p>\n

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Internal Stakeholders<\/h3>\n

Internal stakeholders<\/strong> are groups or people who work directly within the business, such as managers, employees, and owners. Managers and employees want to earn high wages and keep their jobs, so they have a vested interest in the financial health and success of the business. Owners want to\u00a0maximize the profit the business makes as compensation for the risks they take in owning or running a business.<\/p>\n

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\"All<\/p>\n

Figure 1. The picture shows the typical stakeholders of a company. The stakeholders are divided into internal and external stakeholders.<\/p>\n<\/div>\n<\/div>\n

External Stakeholders<\/h3>\n

External stakeholders<\/strong> are groups outside a business or people who don’t\u00a0work inside\u00a0the business but are affected in some way by\u00a0the decisions and actions of the\u00a0business. Examples of external stakeholders are\u00a0customers, suppliers, creditors, the local community, society, and the government. Customers<\/strong> want the business to produce quality products at reasonable prices. Shareholders <\/strong>have an interest in business operations since they are counting on\u00a0the business to remain profitable and provide a return on their investment in the business.\u00a0Creditors <\/strong>that supply financial capital, raw materials, and services to the business\u00a0want to be paid on time and in full. Federal, state, and local governments\u00a0<\/strong>need businesses to thrive in order to\u00a0pay taxes that support government services such as education, police, and fire protection. The local community<\/strong> has a stake in the business because\u00a0it provides jobs,\u00a0which\u00a0generate economic activity within the\u00a0community. Society<\/strong>\u00a0as a whole (as well as the local community) is concerned about the impact that business operations have on the environment in terms of\u00a0noise, air, and water pollution. Society also has an interest in the business with regard to the safety of the goods and services produced by\u00a0the business.\u00a0Suppliers<\/strong> need\u00a0the business to continue to buy their products in order to maintain their own profitability and long-term financial health.<\/p>\n<\/div>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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