What effects did this have on the stakeholders?

Stakeholders

What areStakeholders? Here you get a simple one definition and we also explain to you what it is with the Stakeholder approachis all about!

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Stakeholder definition

When you read the word for the first time, you should first notice that we are talking about "stake" and not "steak". From the small but subtle difference, you know that we are not talking about a juicy piece of meat. "Stake" means something like "share" or "participation".

But what is a stakeholder anyway? In the business administration area, this English term is usually translated into German with a stakeholder group or interest group. these can People, groups, organizations or Institutions be. And they all have one thing in common: They are either directly or indirectly affected by the company's activities and have interest on the result of a project orExpectations of a company. Their claims can either be of a non-material, economic or financial nature. Regardless of whether they are directly involved in the project / company or not, they expect something from the company in some way. Each of the individual groups pursues its own and individual interests and tries to influence the company's decisions to its own advantage. Customers or employees can be cited as examples. But your competition or opponents are also among the relevant stakeholder groups.

A Stakeholder definition could therefore read as follows: Stakeholders (also known as stakeholders) are all people who are interested in a project outcome and who are directly or indirectly affected by the activities of a company. As a result, you have an interest in, or claims to, a company.

Internal stakeholders

As part of its stakeholder management, a company should keep an overview of who its stakeholders actually are. You usually have different ways of influencing the company. These stakeholder groups can be divided into two categories: in internal and external Stakeholders.

On the one hand, you can do the internal stakeholdersr see. Internal interest groups are directly involved in what is happening and work directly on the project or in the company. Of course, you want the project to be successful and the end results to be satisfactory. They include, for example, the employees, the owner (s) or the management. Among other things, you are interested in ensuring that secure jobs are available, that your own company is successful and that profits are increased.

External stakeholders

On the other side are those external stakeholders. This group includes all people who are only indirectly involved in the company or in what is happening. So you are not largely responsible for the fact that products are manufactured, for example.

These would be customers, suppliers, the state, the public, creditors, banks or competitors, to name a few. In contrast to the internal staff, they have different requirements. For example, customers want good products that are offered at an acceptable price. The suppliers, in turn, want a reliable buyer so that they can secure their own business. Various environmental organizations are also showing great interest in how sustainable and environmentally friendly companies produce. Nowadays more and more attention is paid to corporate social responsibility (CSR). Companies try to take on social responsibility by relying more on environmentally friendly resources and doing business sustainably.

Stakeholder value

Now that you know how to precisely define the English word, we can move on to other terms related to the topic. Perhaps you are already on "Stakeholder value“Bumped. This technical term is often used in practice, but it is difficult to define clearly. In the more common definition, it means the value or Usethat the company has for the stakeholders or interest groups. However, one can also see it the other way around and interpret stakeholder value as the value of the individual stakeholder groups for the company.

When you talk about stakeholder value, you don't get around the so-called Stakeholder approach around. In the following paragraph we will explain exactly what this term is all about.

Stakeholder approach

The Stakeholder approach is also called Stakeholder Value Approach orStakeholder concept designated. The basic idea for companies is to know the wishes of their interest and stakeholder groups and to plan them into their projects. In this approach, management aligns the purpose, strategy, and objectives with their most relevant and influential stakeholders. So your company tries to find ways to take these wishes and interests into account and to be able to fulfill them.

One of the goals of stakeholder management is to ensure that the company cannot be damaged by the wishes of influential stakeholders. Ignoring your stakeholders and ignoring their goals and expectations can have fatal consequences. If, for example, you do not take into account the wishes of the stakeholder “customers”, a smooth production process will not do you any good if you make the wrong product.

It is important to identify the individual stakeholders. Once you have found out their goals, you can then define specific measures for your company and apply them. Do your customers want a certain product feature? You are trying to implement this. Are your employees dissatisfied with the working atmosphere? You are looking for ways to improve the situation. Your influential competition wants to wipe you out? You are trying to prevent this with the right countermeasures.

However, when there are often contradicting and differing demands, it is not that easy to find them all in Stakeholder approach to agree with each other. You will see that it is rather unlikely that all wishes can be granted. By precisely recording and analyzing the needs and requirements, you can still investigate where your company can still exploit potential and where there may be dangers.

Phew, now you've got a brief insight into the topic of stakeholders. Would you like a little variety and know what shareholders are? Then let's go to our video!