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Stakeholders – people to consider LEED1110 Exploring Social Enterprise Social Entrepreneurs have a vision but there are some constraints: What is a stakeholder? Why and how do they impact on an enterprise? Who are the stakeholders? It is not just your business – Stakeholder Definitions “Any group or individual that can affect, or is affected by, the performance of the organisation” (Freeman 1984) “Individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends.” (Johnson Scholes 1999) “The firm is a system of stakeholders operating within the larger system of the host society that provides the necessary legal and market infrastructure for the firms activities.” (Clarkson, 1994) Tensions Pulls Should enterprises know about Stakeholders? Failure to account for stakeholders often leads to poor performance, failure or even disaster … Nutt (2002) analysis of 400 strategic decisions – half ‘failed’ because didn’t attend to interests and information held by key stakeholders. Enterprises may start local but may be connected regionally, nationally and internationally Things change – markets, transport, people, regulations. Stakeholder Groups Primary stakeholders – shareholders, investors, employees, contractors, customers and suppliers Secondary stakeholders – media, action groups, government agencies, trade unions, regulatory authorities, those who influence or affect, or are influenced or affected by the enterprise Different Types of Stakeholders Managing your enterprise Identify stakeholders and identify key individuals Identify the orientation of different stakeholders Establish political priorities and trends in the political environment Assess the strength of the stakeholder influence on the company behaviour Evaluate stakeholder attitudes towards the business mission, strategies, activities Identify potential strategies to influence the perceptions of individual stakeholders Win over