Friday 6 November 2015

STAKEHOLDERS AND THEIR ROLE IN BUSINESS ACTIVITIES



Business owners must be aware of the various groups that they interact with for the successful running of the business.

Owners
A business may be owned by a single individual (a sole trader), partners or by a group of shareholders forming a company.

Role of Owners
They must provide the resources that are required for the business to operate efficiently. These include the employment of workers, identifying suitable premise and procuring machinery, equipment and raw materials. They must make timely decisions to ensure that the business remains profitable.  They must motivate employees to perform well.

Employees
They are employed to carry out assigned tasks to achieve the company’s objectives.

Role of Employees
Employees must work efficiently to accomplish tasks assigned.  Accomplishing tasks may require teamwork and therefore employees must have good interpersonal skills. Employees must adhere to the rules and relations of the company.

Customers
They are the supporters of businesses in the economy. They purchase goods and services to satisfy their needs and wants.

Role of Customers
They assist businesses in indentifying the goods and services to be produced based on their demands. They also help business to identify changing trends in the market and so prepare business operators for future demands.

Society
Businesses must be aware of the society as a whole, how its activities affect it and not only those who are customers.

Role of Society
The production process may cause air pollution and discharge of harmful waste into rivers and seas.  The society keeps businesses in check by making them aware of their impact on society. They write letters to the company and the media and speak on talk shows.

Government
They are the managers of the economy within which the business operates.

Role of Government
Regulate business activities to protect consumers. Government agencies ensure product standards as well as that various legislations are adhered to ensure the protection of consumers’ rights.

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