Stakeholders Influence on Business

A very general definition of a stakeholder is someone who has an interest in a company for some reason. The most common stakeholders in a company are the employees, the customers and the shareholders. In large companies the government can sometimes be a stakeholder. Companies in small, rural areas often also have the community around them as stakeholders. All stakeholders have power over a company’s decisions, however, the level of power a stakeholder has …

…many of those desires as possible. Organisations will keep moving in the direction that the majority of stakeholders want it to move in. When a firm stops listening to what its stakeholders want, that is when the firm will start to fail, and if the stakeholders are not listened to at all there is no way that a company can expect to stay in business. All business strategy must be focused on satisfying the stakeholders.