Stakeholders in business
Yvonne Harvey, Contributor

HELLO AGAIN, friends. This week, we move on to a new topic in section one of the syllabus. The specific objectives indicate that at the end of this lesson, you should be able to identify the stakeholders involved in business activities and be able to discuss the role of stakeholders involved in business activities.

For our purposes, stakeholders refer to any individual or group of individuals who have a vested interest in the business and, as such, want it to be a success. Now, we will identify and discuss the role of the main stakeholders in business.

OWNERS/CO-OWNERS

Owners and part-owners are perhaps the chief stakeholders in businesses. This is so by virtue of their contributing capital, whether directly as in partner-ships or through the purchasing of shares as in companies and cooperative societies. Their stake or interest in the business is to see the money that they have invested grow, therefore, they expect to gain interest on the capital they have invested. For this to be realised, the business must be a success.

The owners will therefore do anything in their power to ensure efficiency and high profits. They will ensure that the best methods of production are used at the lowest possible cost and they will see to it that resources are not wasted. Some owners/co-owners take an active role in the running of the business, while others simply contribute capital.

EMPLOYERS

As stakeholders, employers' stake or interest in the business is similar to that of the owner/co-owner, especially where there is an overlap and the owner/co-owner is also the employer in the business. The employer will ensure that the right amount of resources is employed in the business, including labour, to ensure success of the business and security of their jobs if they themselves are employed. This being so, they will try to find every means possible to motivate their workers so as to increase their productivity, all to the ultimate benefit of themselves and the business.

EMPLOYEES

The employees' stake surrounds the fact that the business affords them employment and an opportunity to earn a wage or salary and realise their potentials. Income earned allows them to aim at being economically indepen-dent. Thus, the employees' interest is to keep the business open and alive so that they do not become unemployed. They want to get as much as they can out of the business, whether in cash or kind.

CUSTOMERS/CONSUMERS

This group of persons has an interest in being provided with quality goods and services at affordable prices and of receiving first-class customer care. Therefore, if this is not being provided at the present business, they will easily move to the business's competitors. In their role as customers, they can endeavour to assist the business in satisfying them by informing the business of their likes and dislikes, as they carry out market research and seek to cater to their needs and wants.

GOVERNMENT

If the business is a public-sector business, then the government will have a stake or interest as any other owner of a business. As far as other businesses are concerned, govern-ments are interested in seeing to it that they abide by their requirements in setting up the business and in their operations, they follow closely the laws and regulations of government. Governments see to it that businesses do not exploit the consumers and if they are monopolies or operate like monopolies, they seek to regulate their activities in the interest of the consumer. An important interest or stake for the government is in the taxes and other government contributions that businesses make which allow them to provide the necessary social services that the country needs. They also ensure that businesses put into place policies aimed at reducing market failure, such as social costs, for example, pollution.

ALL OTHER MEMBERS OF SOCIETY

Members of society in general seek for businesses to help to upgrade their communities and to sponsor community events, as well as to offer scholarships and other benefits. If they have invested in these businesses, they expect a good return on their investment, and since they are also consumers, they have the stake that the consumer group has in the business.

In preparation for next week's lesson, do some reading on functions and roles of businesses. Also, see if you can come up with a concise definition of a business. You can compare your definition with the one that I will give you next week.

Bye for now.

Visual arts teacher, Mellissa Gonoz (right), attends to the fitting of one her student's costumes during school activities at Cumberland High School on February 12. The costume was for the school's fashion show on February 15. -Anthony Minott/Freelance Photographer	Visual arts teacher, Mellisa Gonoz (right), points out an area on a sketch that needs attention to artist Richard Chin, during school activities at Cumberland High School on February 12. -Anthony Minott/Freelance Photographer

Yvonne Harvey teaches at Glenmuir High School.