Page 74 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Chapter 5

1.3 Internal stakeholders

Need/expectation:

 Employees – pay, working conditions, job security

 Managers/directors – status, pay, bonus, job security

1.4 Connected stakeholders

Need/expectation:

 Shareholders – steady flow of income, possible capital growth, continuation of
the business

 Customers – satisfaction of customers’ needs will be achieved through
providing value-for-money products and services

 Suppliers – paid promptly

 Finance providers – ability to repay the finance including interest, security of
investment

1.5 External stakeholders

Need/expectation:

 Community at large – the general public can be a stakeholder, especially if their
lives are affected by an organisation’s decisions

 Environmental pressure groups – the organisation does not harm the external
environment

 Government – company activities are central to the success of the economy
(providing jobs and taxes). Legislation (e.g. health and safety) must be met by
the company

 Trade unions –

68