The range of stakeholders involved in business activity
A stakeholder is any person, group of people or other organisation that has an interest in the activities of a business.
Businesses need to be aware of their stakeholders, as many of them will be affected by its activities. Stakeholders can also influence the decisions that a business makes.
Internal and external stakeholders
Internal stakeholders work within a business, either making decisions or carrying them out. External stakeholders do not work within a business but are affected by its activities.
There are eight main types of stakeholder:
| Stakeholder | Definition |
| Shareholders and owners | In a public limited company (PLC), these are people who influence the business鈥 aims, objectives and strategic activities. In a limited company (Ltd), these are people who make business decisions but need to agree them with the other shareholders. Shareholders are part owners of a private or public limited company. |
| Managers | Staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required. |
| Employees | Staff who carry out the day-to-day work of the business. |
| Customers | People who buy products or services from the business. |
| Suppliers | Other businesses and organisations that provide products or services to the business, eg a utility company that supplies it with electricity, or a business that provides the seats used when producing a car. |
| Local community | People, organisations and businesses that live or are located in the area around the business. |
| Pressure groups | Groups of people who share a common interest that is related to the business, eg an environmental pressure group may actively promote a shared interest. |
| Government | The business will make tax payments to both local and central government. |
| Stakeholder | Shareholders and owners |
|---|---|
| Definition | In a public limited company (PLC), these are people who influence the business鈥 aims, objectives and strategic activities. In a limited company (Ltd), these are people who make business decisions but need to agree them with the other shareholders. Shareholders are part owners of a private or public limited company. |
| Stakeholder | Managers |
|---|---|
| Definition | Staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required. |
| Stakeholder | Employees |
|---|---|
| Definition | Staff who carry out the day-to-day work of the business. |
| Stakeholder | Customers |
|---|---|
| Definition | People who buy products or services from the business. |
| Stakeholder | Suppliers |
|---|---|
| Definition | Other businesses and organisations that provide products or services to the business, eg a utility company that supplies it with electricity, or a business that provides the seats used when producing a car. |
| Stakeholder | Local community |
|---|---|
| Definition | People, organisations and businesses that live or are located in the area around the business. |
| Stakeholder | Pressure groups |
|---|---|
| Definition | Groups of people who share a common interest that is related to the business, eg an environmental pressure group may actively promote a shared interest. |
| Stakeholder | Government |
|---|---|
| Definition | The business will make tax payments to both local and central government. |