Topic 1: Understand what a stakeholder is and the difference between market and non-market stakeholders

* What is a Stakeholder?

Person or group that affects, or is affected by, an organization’s decisions, policies, and operations * Stockholders are a type of stakeholder but all stakeholders are not stockholders. * Some stakeholders are Employees * Others are Customers * Still others are Suppliers &/or Creditors

* Market Stakeholders

Stakeholders that engage in economic transactions with the firm. * They include: * Employees * Stockholders * Creditors * Suppliers * Customers * Distributors, wholesalers, and retailers * Each relationship is a two-way exchange i.e. employees produce output and firm pays them wages * Are manager’s stakeholders? some would argue that as employees they are while others would argue that they are representatives of the firm who act in the best interest of stakeholders

* Non-market Stakeholders

people and groups who are affected or can be affected by the actions of the firm even though there is no economic transaction involved * They include: * Community * Government * Non-governmental organizations (i.e. charities, professional associations, environmental organizations) * Media * Business support groups * General public

* Direct Impact on Operations - - Internal * Employees * Suppliers * Customers – middlemen and end-users * Indirect Impact on Operations - - External * Shareholders/Investors * General Public/Community * Government * Creditors * Media

Topic 2: Know how to conduct a stakeholder analysis and understand the basis of