What are Business Stakeholders?
Business Stakeholders are a person or group that can affect or be affected by the actions of a business. Stakeholders have a ‘stake’ in the business and can gain or lose as a result of business activity. Business stakeholders hold the key to the environment in which a business operates and the subsequent financial performance of the business. Effective management of relationships between the business and their stakeholders is key to operating effectively.
What do Business Stakeholders do?
Stakeholders have moral and ethical implications for a business. If a business only focuses on making a profit then the business may have no ethical or moral obligations to any other person, business or society. Therefore a business must take into account the values and interests of their stakeholders as well.
What are the different types of Business Stakeholders?
There are internal and external stakeholders of a business. Internal stakeholders are the people who are committed to serving the business, this includes: employees, managers, owners, volunteers and/or donors. External stakeholders are the people who impact the businesses work from outside the business, this includes: clients, customers, community partners, suppliers, government, shareholders and society.
What’s involved with engaging with Business Stakeholders?
The main steps in engaging with business stakeholders, is to identify and prioritise each stakeholder in the order that they would affect or be affected by the business. Begin by identifying the business stakeholders by listing the people, groups or organisations that are affected by your project, who have influence or power over it, or have an interest in the businesses successful or unsuccessful conclusion. Business stakeholders can be assessed using criteria that helps assess their relevance based on their: influence, impact and alignment. Once the internal and external business stakeholders have been identified then focus on prioritising these stakeholders. There is always a long list of business stakeholders so prioritise your most important stakeholders by determining: who has access to key decision makers, who has access to the media, who is able to access key information, who is able to influence other stakeholders, and who is sufficiently motivated to be active about the business issue/situation.
Where does the engagement of Business Stakeholders fit into the process of marketing a small business?
By engaging with stakeholders, businesses can find new ways to reduce impacts, balance business efficiency with economic success and, ultimately ensure the business is more competitive, profitable and sustainable.
How do Business Stakeholders impact on the marketing of a small business?
Business stakeholders can make and break a business. Stakeholders have the power and influence to change the opinion of other stakeholders which can have a direct impact on the environment the business operates in.
What terms are used in relation to Business Stakeholders?
Common terms used when identifying business stakeholders are: stakeholder analysis, primary stakeholders, secondary stakeholders and shareholders. Definitions for these terms can be found at: