Stakeholders are parties who are interested in the company, ranging from employees to investors. They have business interests for various reasons. On the other hand, the company’s decisions, actions, and success also affect them.
The two general categories of stakeholders are:
- Internal stakeholders such as employees, shareholders, managers
- External stakeholders, such as customers, suppliers, lenders, distributors, local communities, and government.
The owner has an interest in how much profit the company makes and the value of the company. Both have implications for dividend payments and the company’s stock price.
On the other hand, they can also influence the business in making critical decisions such as management changes. If unsatisfied, they can attract investment from the company.
Managers and employees concern about their salary, career, and job security. They influence day-to-day operations because they are involved in various business functions, ranging from finance to marketing.
Customers are interested in the quality and price of the product. They also pay attention to the quality of the after-sales service and the reputation of the company.
And, for companies, they are a source of money. Therefore, customer satisfaction is the key to continuing to make money.
Suppliers provide essential input to the company. They can affect the quality, cost structure, and production process. Low input quality, high prices, and late delivery can create problems for companies.
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At the same time, the company is a customer of suppliers. They are happy if the company pays on time and orders repeatedly.
Lenders such as banks ask for debt repayments on time and in full. They will pay attention to cash flow and the company’s ability to make money.
Local communities care about the comfort of the local environment and the company’s impact on employment. They do not want companies to produce pollution, which endangers their environment.
If they are not satisfied, they will protest and petition. And, it can end up with legal problems.
