Stakeholder examples describes us how an individual or a group can affect a business.
Stakeholders are individuals or groups that influence or are influenced by a company. It may be employees, customers, suppliers or the government as well. All are Stakeholders examples-Shop owners, Company, CEO, Local people, investors, etc. We would explain each with simple words and help you conquer this important topic of business.
In this article, we’ll tell you who the stakeholders are and give real-life examples. It will also show how to monitor and analyze them. We present you with a good stakeholder analysis example, stakeholder mapping example, even a stakeholder analysis example report as well.
Who are Stakeholders?
A stakeholder is someone or a group that has a vested interest in a business or project. They could be internal to the company, or external. If they care about what goes on in the company, they’re stakeholders.
Stakeholders are classified into two broad categories:
- Internal Stakeholders – comprise employees, managers, and owners.
- Outside stakeholders – These encompass customers, suppliers, government, and society and other stakeholders.
All of them focuses on different areas of the business. For instance, employees want a safe place to work, customers want quality products. Investors want profits. The government wants taxes. Everything you mentioned plays a role in one way or another, but it’s all very important.
In the context of stakeholders examples, we refer to those real people or groups who are connected to what the business does. They are the backbone of any business for growth and systems to run effectively.
In business studies, knowing your stakeholders is central. This is what we also use tools such as stakeholder analysis example or stakeholder mapping example. These assist businesses in determining who matters most and how to treat them as such.
Examples of Internal Stakeholders
Internal stakeholders – These are employees within the organization. They form the core of the company. And every day they do something else.
Employees
Employees are a great example of a stakeholder. They want secure work, good wages and a nice workplace. If a company treats them right, then they perform better.
For Example: Every employee in a hotel, such as the chef and cleaners, is a stakeholder. And if the hotel makes more, they might get bonuses. If the hotel is unprofitable, they may be out of a job.
Managers
Managers set plans and make decisions. They assist in operating the business on a day-to-day basis. They’re also internal stakeholders.
Example: Principal of a school is a manager. The school’s performance matters for the principal’s job. The identification is a perfect example of the stakeholder.
Owners/Shareholders
They invest in the business. They want the business to succeed and create profits.
A typical example of a major stakeholder would be the founder of a startup that owns 60% of that company. Any change impacts their profit or loss. By showing different roles inside the business, these stakeholders examples illustrate what we mean: Sometimes their goals are individual, sometimes they are not, but everyone only views success.
Examples of External Stakeholders
These stakeholders can be individuals or groups outside the company. They are not in the business, but what the business does impacts them.
Customers
Products and services are purchased by customers. They want high quality, low prices and fast service.”
For instance: for a fast-food chain, customers are critical stakeholders. They won’t buy if you make awful food. This affects business.
Suppliers
Products, raw materials or interchangeable assets are provided by Vendors. If they ignore or tighten too much, the company suffers.
For instance, it has a shoe manufacturing customer that needs leather from suppliers. If the supplier messes up, no shoes will be produced. The whole chain breaks.
Government
There are laws, and the state taxes and issues licenses. This type is one of the really important critical stakeholders examples.
For example, a factory is required to obey pollution laws. Otherwise, the government can fine or close it.
Local Community
Noise, pollution or proposed jobs offered can affect people that live nearby a business.
Example: The immediate costs of a mining company to the local village. They either provide employment or wreak havoc. It illustrates stakeholders conflicts in organizations examples.
Stakeholders are everywhere as these examples have shown. Even though they don’t work in the business, they play a significant role.
Stakeholder Analysis Example
Stakeholder analysis can tell businesses who is important and what they want. This helps in good planning.
Stakeholder Analysis Simple Example for a Software Company
- Stakeholder
- Interest
- Power
- Action Needed
- Customers
- Want fast & bug-free apps
- Medium
- Ask for feedback regularly
- Employees
- Overcome fear if you can—want decent pay & career fit (good pay for good work)
- Weekly team talks
- Investors
- Want high profits
- Share monthly progress
- Government
- Wants taxes & legal action
- Medium
- Follow laws
This is from stakeholder analysis example report. It informs the company where to prioritize.” It helps avoid issues and creates closer ties with people.
Stakeholder Mapping Example
Stakeholder mapping is plotting stakeholders on a chart according to their interest and power. It makes it clear to managers who to manage first.
Consider a stakeholder mapping example for a hospital
- High Power & High Interest – Medical practitioners and healthcare organisation
- High Power & Low Interest government health officers.
- Low Power & High Interest – Patients and their families
- Low Power & Low Interest–Marginal suppliers
This map tells the hospital, who needs more conversation with us? It can focus on physicians and patients more.
This method is helpful where many stakeholders are involved. It makes things uncomplicated and clear. Second, mapping stakeholders saves time and prevents issues later.
Stakeholder Management Examples
An even simpler way to put it is that stakeholder management is managing your stakeholders. You have to know what they need, talk to them constantly, and not get into arguments.
Construction Project
You are in a road building project. You have all these:
- Government
- Local inhabitants (may encounter noise or roadblocks)
- Workers (deserve better tools and pay)
(The project head talks to each group, explains the timeline and handles complaints.) This is clever stakeholder management.
School Management
Principal of school handle all of these-
- Teachers (who need support)
- Students (those who need tools to learn)
- Parents (who need updates)
Well-organized stakeholder relationship management examples include a monthly meeting and updates via apps.
Good management makes things run smoothly at work. Failure comes from not understanding your stakeholders. These examples of stakeholders explain why care and planning are essential.
Stakeholder Conflicts in Organizations Examples
Stakeholder interests are not always aligned. There can sometimes be conflict in organisation. These are examples of stakeholder conflicts in organizations:
Example 1: Factory or Community
All factories make noise and smoke. The company wants profits. The locals want peace and clean air.
If the factory doesn’t heed the locals, protests can follow. This can stop work. The only way out of it is for both sides to negotiate and agree on measures.
Example Two: Managers Vs Employees
Managers might lay off workers to save money. Employees want job safety.
Here, talking fair and maybe working part-time is a middle way. That falls under good stakeholder management.
Example 3: Equity versus Customers
Shareholders might prefer high prices. Customers want low prices.
This fight can damaging the brand value. Businesses can produce offers or value packs to support both parties to keep up happy.
Conflicts are normal. But if handled properly, no damage is done. Find out how to juggle the needs of both groups for the long haul.
Relevance to ACCA Syllabus
Stakeholder analysis is fundamental in BT (Business and Technology) & SBL (Strategic Business Leader). The ACCA students had to show the mechanisms through which businesses do that when stakeholders expect ethical behavior in decision making and mechanisms of corporate governance.
Stakeholders Examples ACCA Questions
Q1. What is an example of a secondary stakeholder?
A) Suppliers
B) Government agencies
C) Board of Directors
D) Shareholders
The answer is: b) government agencies
Q2. Internal stakeholder? Who of the following?
A) Trade unions
B) Media
C) Employees
D) Creditors
Answer: C) Employees
Q3. What share are customers among relevant external stakeholders?
A) in charge of internal audit
B) This earns the company money
C)They set financial policy
D) They prepare reports
Ans: B) For business to earn profit
Q4. It may be investors like these who are most worried about being paid their dividends.
A) Government
B) Employees
C) Shareholders
D) Suppliers
Answer: C) Shareholders
Q5. Trade unions look after the interests of stake holders.
A) Environmentalists
B) Regulatory authorities
C) Workforce rights
D) Customers
Answer: C) Workforce rights
Relevance to US CMA Syllabus
Stakeholder engagement is paramount to strategic planning, risk analysis, performance evaluation, etc in Part 1 – Financial Planning, Performance and Analytics. Thus, CMAs need to know how stakeholder demands affect managerial decision-making and corporate accountability.
Stakeholders Examples US CMA Questions
Q1. The cost management report would be of most interest to which of the following stakeholder groups?
A) Environmental NGOs
B) Internal managers
C) Media
D) Customers
Answer: B) Internal managers
Q2. Whose define as external stakeholders?
A) Government bodies
B) Credit rating agencies
C) Company employees
D) Suppliers
Answer: C) Company employees
Q3. How do suppliers generally try to influence managerial decisions?
A) On price and payment terms
B) By regulating labor laws
C) Through direct ownership
D) The decisions of superimposing board
Ans: A) By means of pricing and payment terms
Q4. Which one of those has a financial stake?
A) Marketing team
B) Internal auditors
C) Investors
D) Customers
Answer: C) Investors
Q5. Out of these stakeholder, who cares about sustainability reports?
A) Tax authorities
B) Operations team
C) Local communities
D) CFO
Answer: C) Local communities
Relevance to CFA Syllabus
In the Ethical and Professional Standards and Corporate Issuers topics, CFA candidates are required to evaluate the impact of investment decisions and corporate strategies on stakeholder groups and how ethical considerations inform analyst(s) behavior.
Stakeholders Examples CFA Questions
Q1. The most important stakeholder of the capital market
A) Equity analysts
B) Tax accountants
C) Creditors
D) Industry regulators
Answer: C) Creditors
Q2. Because what kind of earnings are most likely to get hit?
A) HR department
B) Institutional investors
C) IT suppliers
D) Competitors
Ans: B) Institutional investors
Q3. Why are regulators key stakeholders of public companies?
A) They are marketing planers
B) They provide investment
C) They impose compliance and transparency
D) They handle mergers
Answer: C) They ensure compliance and transparency
Q4. What is the best classification of the media as a type of stakeholder?
A) Primary
B) External
C) Internal
D) Direct
Answer: B) External
Q5. Executive pay Probably least likely to Which group of Stakeholders?
A) Shareholders
B) Customers
C) Vendors
D) Legal departments
Answer: A) Shareholders
Relevance to US CPA Syllabus
Stakeholder focus is a huge emphasis on BEC and AUD. In addition, stakeholders in corporate governance, auditing procedures, and ethical choices are essential concepts that CPAs should be familiar with.
Stakeholders Examples US CPA Questions
Q1. There are many parties involved, however who bears the responsibility for the accuracy of financial statements in the audit process?
A) External auditor
B) CFO
C) Tax authority
D) Shareholders
Answer: B) CFO
Q2. What do stakeholders do?
A) Conduct daily operations
B) Corporate strategy & governance oversight
C) Set product pricing
D) Perform marketing analysis
Ans: B) Corporate strategy and oversight
Q3. Which of these stakeholders do you think are most vulnerable to the negative impact of problems in internal control?
A) Local government
B) Investors
C) Competitors
D) Suppliers
Answer: B) Investors
Q4. Who in audit engagement qualifies under direct stakeholder?
A) Customers
B) Audit committee
C) Tax consultants
D) Competitors
Answer: B) Audit committee
Q5. Modern cogs in the wheel: The SEC as a stakeholder in public accounting
A) It funds company projects
B) Creates a marketing plan
C) Compliance with the financial laws
D) It prepares tax returns
Answer: C) For compliance with laws governing our finances
