Mind Your Own Business - Stakeholders

Stakeholders are the people or organization that have a direct interest in and is affected by the actions and performance of a business.

Internal Stakeholders are the members of the actual organization or business.

Some are:

Employees
Who strive to improve:
- pay
- working conditions
- job security
- training and career progression opportunities

Shareholders
Who's main objectives are:
- maximizing dividend payments
- rise of the value of share price

Managers and Directors
Who attempts to:
- maximize their own benefits (bonus and perks)
- profit maximization

External Stakeholders are not part of the business but have interest in the actions of the organization.

Some are:

Suppliers
Who rely on business co-operation and purchasing

Customers
Who rely on the product and business, and have the control of either buying or not the business' service or good

Special Interest Groups are an organization that advocates certain issues, and is also an external stakeholder, monitoring the ethical behaviour of companies.
Their members are passionate individuals who believe in the cause that they are trying to promote/protect.

Some of the types of SIG's are:

Trade Unions (Labour Unions)
They aim to:
- protect and enhance the conditions of the working members
- make sure that wages and salaries rise with inflation
- introduces minimum wage
- better working conditions

Pressure Groups:
They aim to:
- place influence on organizations to act a certain way
- lobby a change in legislation
- protet their point of interest
- provide public awareness on the issue

Industry Trade Groups:
- promoting particular industries through education and advertising
- funded by business in particular industry

Local Community:
They will place demands on businesses that operates in their community
Such as:
- job creation and opportunities
- consideration of the local environment
- wide choice of provision of products with competitive prices
- sponsorship and fundraising of local events
Unless the business does these things for the local community, it will not be accepted into the area and will be boycotted.

The factors which when completed can help SIG's complete their goals are:
- funding (public funding will provide more strength in an SIG)
- public opinion (the better people think of them, the more damage they can do if displeased and the greater effects they can make)
- number of members (the more people involved, the bigger impact if goods are boycotted or protested)
- commitment of members (if the members are commited, there is a greater chance of success as they will be willing to sacrifice a lot for their cause)

The reasons a company should pay notice to a SIG is because:
- the effectiveness of the SIG (could cause more damage)
- market power of the business (if they have a monopoly they may not need to care)
- costs (if the price is higher than they can pay it is not worth it, but if they can then should they?)
- views of directors, senior managers, and shareholders (if they believe the SIG should be noticed, it causes more pressure to notice them)
- aims and objectives of the business (whether or not the SIG follows or conflicts with the objectives)