The major stakeholders in a company include shareholders, government, employees, customers and creditors/bondholders. They have different objectives and goals based on their diverse interests in the firm. Objectives are what the stakeholders seek to achieve.
How are government considered stakeholders?
Governments can also be considered a major stakeholder in a business, as they collect taxes from the company (corporate income taxes), as well as from all the people it employs (payroll taxes) and from other spending the company incurs (sales taxes).
How might stakeholders have different objectives?
Different stakeholders have different objectives. The interests of different stakeholder groups can conflict. It will therefore benefit owners but work against the interests of existing staff who will lose their jobs. Customers also suffer if they receive a poorer service.
Is the government a stakeholder in a business?
External stakeholders are groups outside a business or people who don’t work inside the business but are affected in some way by the decisions and actions of the business. Examples of external stakeholders are customers, suppliers, creditors, the local community, society, and the government.
Can the state government be a stakeholder?
Power, accountability and funding are split not only among different levels of government, from local to state to federal, but also between departments and within departments. In the broadest terms, government stakeholders include all citizens.
Who are the most important stakeholders in a business?
Shareholders/owners are the most important stakeholders as they control the business. If they are unhappy than they can sack its directors or managers, or even sell the business to someone else.
What do we mean by stakeholders and their interests?
A stakeholder is any individual or investor group that has an interest in the success of a business. Company stakeholders are often interested in the outcome of a company because they are invested in it in some way. It is possible to have many different stakeholders, all with different interests in the business.
