Stakeholders: Their impact on the success of a business

Ayuba Ernest

Verified member
The relationships that a company maintains with its various stakeholders are frequently the deciding factor in how successful the company will be. Stakeholders are anyone who has a vested interest in the company and can have either a positive or negative impact on the business. Stakeholders can be defined as anyone who has a financial interest in the company.

The shareholders, the consumers, and the employees are the three primary categories of stakeholders. In order for the company to be successful, it is necessary to properly manage its connections with each of these groups because each group has unique requirements and expectations.

Shareholders often have an interest in increasing earnings to their full potential and may be willing to make certain short-term concessions in order to accomplish this objective. Customers are interested in purchasing items at reasonable prices. Employees, on the other hand, are those who work for the company. All of the factors that were discussed above contribute in some way to the overall success of a company.