Stakeholder Influences on business success

Stakeholders can have a strong impact on businesses. Keeping stakeholders happy is important for businesses although it’s not always possible. For example, the shareholders may want to earn as much profit as possible but the workers want a pay rise. It may not be possible to do both things at the same time. Customers are an incredibly important group in business success. Customer retention is important and businesses invest in customer service to ensure their loyalty.

Employee participation is important of course. Employees who are satisfied tend to be more productive and stay with the company longer. You may have heard of corporate social responsibility.

This is about how a business behaves. A business that wants to be seen as responsible will try to behave in a moral way, e.g. refusing to use palm oil or ensuring that it pays its workers the national living wage.