1.2 Stakeholders

• What are stakeholders in a business context?

  Groups with an interest
• Employees are internal stakeholders whose primary interest is job security
• Customers are external stakeholders focused on quality products and services.
• Why are stakeholders crucial for achieving business objectives?

  Their cooperation and satisfaction
• Stakeholders can be categorized into internal and external
• Match the stakeholder type with their primary interest:

  Employees ↔️ Job security, wages

  Managers ↔️ Career advancement

  Owners ↔️ Profit, market share

  Customers ↔️ Quality products

  Investors ↔️ Return on investment
• What is the purpose of stakeholder management in a business?

  Ensuring long-term sustainability
• Suppliers expect fair payment terms and long-term contracts.
• Why is understanding stakeholder interests important for effective management?

  To achieve business objectives
• Steps in analyzing the impact of stakeholders on business decisions:

  1️⃣ Identify stakeholders and their primary interests

  2️⃣ Assess the influence of each stakeholder group

  3️⃣ Evaluate the potential impact on business decisions

  4️⃣ Develop strategies to manage stakeholder interests
• What is the primary role of stakeholders in business decisions?

  Influencing strategic direction
• Stakeholders influence business decisions by considering their primary interests
• Employees primarily seek job security and fair wages from businesses.
• What primary interest drives owners in a business?

  Profit and market share
• Steps in effective stakeholder management

  1️⃣ Identification

  2️⃣ Understanding

  3️⃣ Engagement

  4️⃣ Communication

  5️⃣ Feedback

  6️⃣ Collaboration
• Understanding stakeholder needs involves assessing their interests through surveys or meetings.
• Ensuring transparent and timely information sharing enhances stakeholder satisfaction
• What are the two main types of stakeholders?

  Internal and external
• Match the stakeholder type with an example:

  Internal Stakeholder ↔️ Employees

  External Stakeholder ↔️ Suppliers
• Managers are primarily concerned with career advancement and organizational success.
• Customers, as external stakeholders, are interested in quality products and services
• What primary interest drives suppliers in their relationship with a business?

  Fair payment terms
• Steps in effective stakeholder collaboration

  1️⃣ Identify stakeholders

  2️⃣ Assess stakeholder interests

  3️⃣ Engage in dialogue

  4️⃣ Provide feedback

  5️⃣ Implement changes
• Owners, as stakeholders, aim to increase profit and market share
• Match the stakeholder type with their primary interest:

  Investors ↔️ Return on investment

  Community ↔️ Social responsibility
• What are the two main interests of employees as stakeholders?

  Job security and wages
• Understanding stakeholder influences is crucial for businesses to make balanced decisions.
• Shell's stakeholder management in the Niger Delta involves extensive community engagement
• What is the role of ethical considerations in stakeholder relationships?

  Maintaining trust and sustainability
• Match the ethical principle with an ethical practice:

  Transparency ↔️ Openly sharing relevant information

  Fairness ↔️ Providing equal opportunities
• Honesty involves being truthful and genuine in all interactions with stakeholders.