External Stakeholder

Topics: Stakeholder, Stakeholder theory, R. Edward Freeman Pages: 5 (1249 words) Published: June 17, 2010
Stakeholder
For other uses, see Stakeholder.

Internal and external stakeholders of a company
A corporate stakeholder is a party that can affect or be affected by the actions of the business as a whole. The stakeholder concept was first used in a 1963 internal memorandum at the Stanford Research institute. It defined stakeholders as "those groups without whose support the organization would cease to exist."[1] The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). The term has been broadened to include anyone who has an interest in a matter.

Examples of a company stakeholders
StakeholdersExamples of interests
Owners private/shareholdersProfit, Performance, Direction

GovernmentTaxation, VAT, Legislation, Low unemployment

Senior Management staffPerformance, Targets, Growth

Non-Managerial staffRates of pay, Job security

Trade UnionsWorking conditions, Minimum wage, Legal requirements CustomersValue, Quality, Customer Care, Ethical products
SuppliersProviders of products and services used in the end product for the Customer. CreditorsCredit score, New contracts, Liquidity
CommunityJobs, Involvement, Environmental issues, Shares
Types of stakeholders
People who will be affected by an endeavour and can influence it but who are not directly involved with doing the work. •In the private sector, People who are (or might be) affected by any action taken by an organization or group. Examples are parents, children, customers, owners, employees, associates, partners, contractors, suppliers, people that are related or located near by. Any group or individual who can affect or who is affected by achievement of a group's objectives. •An individual or group with an interest in a group's or an organization's success in delivering intended results and in maintaining the viability of the group or the organization's product and/or service. Stakeholders influence programs, products, and services. •Any organization, governmental entity, or individual that has a stake in or may be impacted by a given approach to environmental regulation, pollution prevention, energy conservation, etc. •A participant in a community mobilization effort, representing a particular segment of society. School board members, environmental organizations, elected officials, chamber of commerce representatives, neighborhood advisory council members, and religious leaders are all examples of local stakeholders. Internal Stakeholders - Market (or Primary) Stakeholders are those that engage in economic transactions with the business. (For example stockholders, customers, suppliers, creditors, and employees) External Stakeholders - NonMarket (or Secondary) Stakeholders are those who - although they do not engage in direct economic exchange with the business - are affected by or can affect its actions. (For example the general public, communities,activist groups, business support groups, and the media) Company stakeholder mapping

A narrow mapping of a company's stakeholders might identify the following stakeholders: •Employees
Communities
Shareholders
Creditors
Investors
Government
Customers
A broader mapping of a company's stakeholders may also include: •Suppliers
Labor unions
Government regulatory agencies
Government legislative bodies
Government tax-collecting agencies
Industry trade groups
Professional associations
NGOs and other advocacy groups
Prospective employees
Prospective customers
Local communities
National communities
Public at Large (Global Community)
Competitors
Schools
Future generations
Analysts and Media
Alumni (Ex-employees)
Research centers
Each Person
In management
In the last decades of the 20th century, the word...
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