1.4 Stakeholders - notes
So far we have examined the nature of business activity and types of organisations and their objectives. In the next section we examine stakeholders. The concept of stakeholders is fairly recent in the business lexicon. It was introduced to highlight the fact that businesses are not just involved in production of goods or the delivery or resources, but have a range of responsibilities to different groups who have an interest in their activities. These stakeholder groups have varying requirements from the firm, and the firm has different responsibilities to each of the groups. The result may be conflict.
By the end of this section you should be able to:
- Explain the interests of internal and external stakeholders and possible areas of conflict between them
- Evaluate possible ways to overcome stakeholder conflict