Issue 2 Sept 2012

Page 1

Business Stakeholders – their objectives and aims.
A stakeholder in a business, is any group or
individual who can benefit or lose from the
activities of a business. The most commonly
accepted stakeholders are business owners
(shareholders), staff, and managers. To
these traditional stakeholders can be added
a wider group who will include customers, suppliers, the government, those who live locally
to business operations and even those affected in the wider community by a business’

invested in, high dividends and strategies to
achieve short term growth. But these strategies may be at odds with achieving long term
growth through reinvestment of profits and
investing in brand value, which are what the individual, long term investor is looking for.

Theses stakeholders are not all driven by the
same objectives, in fact it is likely that different stakeholder groups will want very different things from the business concerned.
Therefore it is not unusual to find different
stakeholders and stakeholder groups coming
into conflict over a businesses activities and

The focus of managers should be on achieving
long term business objectives, using the resources under their control to achieve maximum benefit for the business, getting the
most from the assets that
they manage. Unfortunately
for business, the main long
The idea of selfterm objective of many
managers is the protection preservation is often
the main motivator
of their position.


Unfortunately for the little guy, the institutional view is the one that more often than not
wins the day.


for any middle

Shareholders are of
course the owners of a
find different
limited company. On the
stakeholders and face of it, all shareholdstakeholder groups ers share the common
coming into conflict objective of sustained
long term growth, giving
over a...