Enterprise · Both
Stakeholders & Interdependence
Stakeholders are individuals or groups affected by business activity – owners, employees, customers, suppliers, community and government.
Internal vs external
Internal: owners, managers, employees.
External: customers, suppliers, lenders, local community, pressure groups, government.
Conflict of interest
Owners may want higher profit; employees want higher wages; customers want lower prices.
Managers balance stakeholder needs when setting objectives.
Worked example
Why might a factory expansion please owners but worry the local community?
Solution: Jobs/profit vs noise, traffic, pollution concerns.
Practice questions
1. Name three external stakeholders.
2. What is interdependence in business?