How stakeholders affect business activity
All stakeholderAny person, group of people or other organisation that has an interest in the activities of a business. groups have an impact on a business, but some will have more impact than others, giving them more power and influence on the activities of the business:
| Stakeholder | Impact on business activity |
| Shareholders and owners | Owners have the most impact, as they make decisions about the activities of the business and provide funding to enable it to start up and grow. Shareholders influence the objectives of the business. |
| Managers | Managers make some recommendations and decisions that influence the business鈥 activity. |
| Employees | Employees may have a limited amount of influence on business decisions. However, they can also affect the business directly, eg by refusing to work or not working as well as they should. |
| Customers | Customers buy products and services and give feedback to businesses on how to improve them. Customers are also able to influence others by recommending the business to friends or by warning them against using the business. |
| Suppliers | Suppliers can have a significant impact on a business if there are any changes in the quality of the goods they supply or the reliability of their deliveries. |
| Local community | If a business affects a large number of local residents negatively, they may protest or object through the local council. They can also support businesses by buying products and services. |
| Pressure groups | Pressure groups can improve working conditions for employees and help them to get fair pay. They can also try to influence customers鈥 opinions of a business. |
| Government | Governments can pass new laws, change tax levels or amend levels of government spending in ways that affect the business, eg by providing increased grants or funding. |
| Stakeholder | Shareholders and owners |
|---|---|
| Impact on business activity | Owners have the most impact, as they make decisions about the activities of the business and provide funding to enable it to start up and grow. Shareholders influence the objectives of the business. |
| Stakeholder | Managers |
|---|---|
| Impact on business activity | Managers make some recommendations and decisions that influence the business鈥 activity. |
| Stakeholder | Employees |
|---|---|
| Impact on business activity | Employees may have a limited amount of influence on business decisions. However, they can also affect the business directly, eg by refusing to work or not working as well as they should. |
| Stakeholder | Customers |
|---|---|
| Impact on business activity | Customers buy products and services and give feedback to businesses on how to improve them. Customers are also able to influence others by recommending the business to friends or by warning them against using the business. |
| Stakeholder | Suppliers |
|---|---|
| Impact on business activity | Suppliers can have a significant impact on a business if there are any changes in the quality of the goods they supply or the reliability of their deliveries. |
| Stakeholder | Local community |
|---|---|
| Impact on business activity | If a business affects a large number of local residents negatively, they may protest or object through the local council. They can also support businesses by buying products and services. |
| Stakeholder | Pressure groups |
|---|---|
| Impact on business activity | Pressure groups can improve working conditions for employees and help them to get fair pay. They can also try to influence customers鈥 opinions of a business. |
| Stakeholder | Government |
|---|---|
| Impact on business activity | Governments can pass new laws, change tax levels or amend levels of government spending in ways that affect the business, eg by providing increased grants or funding. |
Question
Which stakeholder type has the most influence on the activities and objectives of a business?
The shareholders and owners.