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Stakeholders. THE TIMES 100. Stakeholders are groups or individuals with an interest in a business. Stakeholders may affect or be affected by the decisions of an organisation. Stakeholders. Types of stakeholder.

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stakeholders

Stakeholders

THE TIMES 100

stakeholders2

Stakeholders are groups or individuals with an interest in a business. Stakeholders may affect or be affected by the decisions of an organisation.

Stakeholders
stakeholder interests

Each stakeholder group will have its own expectations of the business. For example, customers expect good value for money and a regular source of goods and services.

What do you think are the expectations of the other stakeholders?

Stakeholder interests
stakeholder conflict

Conflict between the needs of stakeholder groups may occur. For example, paying workers higher wages could result in lower dividends to shareholders.

Stakeholder conflict
shareholder concept

The shareholder concept is the traditional view that shareholders are the most important stakeholder.

This view holds that as shareholders employ managers to run businesses on their behalf, managers’ decisions should only consider the objectives of the shareholders.

Shareholder concept
corporate responsibility

In contrast to the shareholder concept, Corporate Responsibility considers the responsibility of an organisation to all stakeholders, including the community and society at large.

CR considers both the financial and non-financial performance of an organisation.

Corporate Responsibility
internal and external stakeholders

Which of the following stakeholders are internal to the business and which are external?

  • Shareholders
  • Customers
  • Local communities
  • Interest groups
  • Employees
  • Managers
Internal and external stakeholders
local community objectives

What expectations do local communities have of Shell? How has Shell sought to meet these needs?

Use the Shell case study to help you

Local community objectives
interest groups

Interest groups are people and organisations who can make decisions and form opinions that can affect an organisation. Use the Shell case study to identify the different interest groups that interact with Shell.

Interest groups
stakeholder conflict12

Conflict can occur between the needs of different stakeholder groups. Use the case study to find out how Shell attempts to avoid conflict before making major decisions or investments.

Stakeholder conflict
useful resources

Stakeholder lessons suggestions and activities (The Times 100)

  • Shell case study (The Times 100)
  • Shell website
Useful resources