Stakeholders

Employees – They want job security, to be paid a fair wage and to be part of a successful business. Are employees internal or external stakeholders?

• INTERNAL STAKEHOLDER

• EXTERNAL STAKEHOLDER

Inland Revenue (HMRC) – The Government need to know how successful the business is to ensure they collect and receive the correct amount of tax. Is HMRC an internal or external stakeholder?

• INTERNAL STAKEHOLDER

• EXTERNAL STAKEHOLDER

Owners – The owners have invested their own money into the business in the hope that it will progress and grow.

• INTERNAL STAKEHOLDER

• EXTERNAL STAKEHOLDER

Shareholders – They have bought shares in the Public Limited Company and want a good return on the money they have invested through the payment of dividends. They also want to see the value of their shares rise. Are shareholders internal or external stakeholders?

• INTERNAL STAKEHOLDER

• EXTERNAL STAKEHOLDER

Suppliers – They need to be guaranteed that if they supply goods on credit that the company has the ability to pay them back. Are suppliers internal or external stakeholders?

• INTERNAL STAKEHOLDER

• EXTERNAL STAKEHOLDER

Banks - They want to make sure that if they provide an organisation with a loan that the business will be able to pay it back within the terms and conditions of the loan agreement. Is a bank an internal or external stakeholder?

• Internal Stakeholder

• External Stakeholder

Local Community - The local community surrounding a business want it to do well so it can provide employment in the area and even support local projects. They also want to ensure that the business does not create any negative effects such as pollution or traffic congestion. Is the local community an internal or external stakeholder?

• Internal Stakeholder

• External Stakeholder

Customers - The customers of a company want the business to provide them with a quality product or service at an affordable and reasonable price. Are customers internal or external stakeholders?

• Internal Stakeholder

• External Stakeholder

Support Agencies - Provide support and advice for entrepreneurs and start-up businesses. These include Business Gateway and the Prince’s Scottish Youth Business Trust. Is a support agency an internal or external stakeholder?

• Internal Stakeholder

• External Stakeholder

What are stakeholders?

• Anybody who knows the name of the business
• Anybody who takes an interest in a business
• Anybody who works for the business
• Anybody who buys from the business