who are stakeholders

 Stakeholders: The people who shape every business decision

Imagine this:

A company launches a brand-new eco-friendly product. Customers cheer, employees feel proud, and investors see green arrows pointing up. But then, local suppliers complain about tighter contracts, and the community raises concerns about factory waste. Suddenly, the same project that seemed like a win for everyone doesn’t look so simple anymore.

Welcome to the world of stakeholders—the people and groups who can make or break a business decision.

Who are stakeholders?

In simple terms, stakeholders are individuals or groups that have an interest in the activities and outcomes of a business. They can influence, or be influenced by, the company’s decisions. Unlike customers, who just buy products, stakeholders are connected more deeply—they care about whether a business succeeds, fails, or changes direction.

Types of stakeholders

Internal Stakeholders – Those within the organization.

·       Employees: Want fair pay, job security, and career growth.

·       Managers: Seek performance, efficiency, and team loyalty.

·       Owners/Shareholders: Look for profitability and long-term returns.

 External Stakeholders – Those outside the organization.

·       Customers: Demand quality, value for money, and ethical practices.

·       Suppliers: Expect timely payments and stable contracts.

·       Government: Wants compliance with laws and tax contributions.

·       Community/Society: Desires jobs, safety, and minimal environmental damage.

·       Banks: Care about loan repayments and financial stability.

Questions to discuss:

a)     Shareholders Vs Stakeholders -   are they different?

b)    Why do conflicts among stakeholders arise?

A Scenario: The Stakeholder Tug-of-War

Consider Urban Nest Builders, a fictional real estate company. Urban Nest plans to launch a new residential complex in a fast-growing city suburb.

·       Shareholders are excited. A new project means growth and higher profits.

·       Employees see opportunities for promotions and new roles.

·       Customers (homebuyers) eagerly await affordable housing options.

But here’s the twist:

·       The local community protests, arguing that the project will cut down green space and increase traffic.

·       Environmental groups demand stricter eco-friendly measures, which will raise costs.

·       Suppliers worry that tighter deadlines and price negotiations will eat into their margins.

·       Meanwhile, the local government insists on additional permits and compliance checks, slowing down the project.

Now Urban Nest is stuck in a stakeholder conflict. If they rush the project to please shareholders, they risk public backlash. If they delay and add eco-friendly features, costs go up, reducing investor satisfaction. If they cut corners to save money, customers and regulators lose trust.

This scenario highlights the balancing act businesses face every day. They must navigate competing demands, ensuring no major stakeholder group feels ignored, while still pursuing their strategic goals.

Conclusion

Stakeholders are not just background players in business—they are the driving forces that shape decisions and outcomes. From employees to investors, from communities to governments, each has a voice that must be heard. Conflicts are inevitable, but successful businesses are those that learn to balance these competing interests, turning challenges into opportunities for growth.

Next time you read about a company’s new project or product, remember: behind the glossy announcement lies a complex web of stakeholders, each pulling in their own direction. The smartest leaders know how to keep that tug-of-war in balance.

Questions to discuss

a)     If you were part of Urban Nest’s management team, which stakeholder group’s concerns would you prioritize first, and why?

b)    How could Urban Nest find a balance between profitability (shareholders) and sustainability (community and environmental groups)?

c)     Do you think stakeholder conflicts can ever be fully resolved, or only managed? Give examples from this scenario.