Wednesday, March 28, 2018

5-Characteristics of Stakeholders

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

2. Managers:

  • organise
  • make decisions
  • plan
  • control
  • are accountable to the owner(s)

3. Employees or Staff:

  • A business needs staff or employees to carry out its activities
  • Employees agree to work a certain number of hours in return for a wage or salary
  • Pay levels vary with skills, qualifications, age, location, types of work and industry and other factors

4. Customers:

  • Customers buy the goods or services produced by firms
  • They may be individuals or other businesses
  • Firms must understand and meet the needs of their customers, otherwise they will fail to make a profit or, indeed, survive

5. Suppliers:
  • Firms get the resources they need to produce goods and services from suppliers
  • Businesses should have effective relationships with their suppliers in order to get quality resources at reasonable prices
  • This is a two-way process, as suppliers depend on the firms they supply

6. Community:

  • Firms and the communities they exist in are also in a two-way relationship
  • The local community may often provide many of the firm’s staff and customers
  • The business often supplies goods and services vital to the local area
  • But at times the community can feel aggrieved by some aspects of what a firm does

7. Government:

  • Economic policies affect firms’ costs (through taxation and interest rates)
  • Legislation regulates what business can do in areas such as the environment and occupational safety and health
  • Successful firms are good for governments as they create wealth and employment