Stakeholder Analysis - Explained
What is Stakeholder Analysis?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
Table of ContentsWhat is Stakeholder Analysis? What is the Stakeholder Value Perspective? Who are Stakeholders of a Business Organization?What are the Categories of Stakeholder?Steps in Stakeholder Analysis?
What is Stakeholder Analysis?
Stakeholder Analysis identifies the ways in which stakeholders may influence the organization or may be influenced by its activities, as well as their attitude towards the organization and its targets.
What is the Stakeholder Value Perspective?
According to the Stakeholder Value Perspective, Proposed by Edward Freeman (1984), the very purpose of the firm is to serve as a vehicle for coordinating stakeholder interests. In this view, Stakeholder Analysis is an end in itself.
The role of management is to formulate and implement strategies and to make decisions that satisfy all or most of the stakeholders, or to ensure at least that no powerful and legitimate stakeholders are left too unhappy.
Who are Stakeholders of a Business Organization?
Here is a comprehensive list of typical stakeholders that might fall in these two categories:
- Owners and stockholders, investors
- Banks and creditors
- Partners and suppliers
- Buyers, customers and prospects
- Employees, works councils and labor unions
- Government (local, state, national, international) and regulators
- Professional associations, Industry trade groups
- Non-governmental organizations
- Public, social, political, environmental, religious interest groups, communities
What are the Categories of Stakeholder?
There are Internal Stakeholders (such as employees) and External Stakeholders (such as government).
We can also distinguish between Primary Stakeholders (such as stockholders) and Secondary Stakeholders (such as government). Where the line is drawn precisely, is a source of much debate.
Steps in Stakeholder Analysis?
- Identify stakeholders
- Understand stakeholder needs and interests. Classify them into meaningful groups.
- Prioritize, balance, reconcile or synthesize the stakeholders
- Integrate stakeholder needs into the strategies of the organization and into its actions