Example of Internal Stakeholders:
– If workers are to be given more responsibility, they will expect increased pay.
– If growth is going to occur, the managers will want increased profits, leading to increased bonuses.
Example of Connected Stakeholders:
– If capital is required for growth, the shareholders will expect a rise in the dividend stream.
– Any attempt to, for example, increase the quality and the price, may lead to customer dissatisfaction.
– If a decision is made to delay payment to suppliers to ease cash flow, existing suppliers may cease supplying goods.
– The firm’s ability to generate cash.
Example of External Stakeholders:
– Local residents’ attitude towards out-of town shopping centers.
– If an airport wants to build a new runway, the pressure groups may stage a ‘sit in’.
– Actions by companies could break the law, or damage the environment, and governments therefore control what organisations can do.
– If a department is to be closed the union will want to be consulted, and there should be a scheme in place to help employees find alternative employment.