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Stakeholders

Stakeholders

What is meant by the term stakeholder? Critically examine the contention that growing stakeholder power conflicts with improved business performance.

For the purpose of this report I intend to define the term stakeholder, list what various types there are, their importance to the company as individuals and a whole, what powers they hold individually and how these powers conflict or enhance business performance.
	A company has responsibilities to a number of interested parties; this consists of the shareholders, society, managers, creditors, employees and customers.
What is the definition of a stakeholder?
A stakeholder has been defined either an individual or group who have a direct interest in the activities, operations and performance of a firm.
There are two different types of stakeholders
·	Internal stakeholder
·	External stakeholder
Internal stakeholders consist of management, employees and shareholders, while external stakeholders are financiers, local community, suppliers, government and consumers. The main stakeholders; shareholders, employees, customers, financiers, suppliers and the local community have an interest to some extent in seeing that sensible decisions are being made on their behalves, in the best interest of the firm and their investment.

Employees
Employees are said to have a stake in the company as they work for the company and are at the same time dependent on the

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Word Count: 419

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