What is a stakeholder objective?
An organization’s stakeholders are the individuals or groups that influence or have an interest in the firm’s actions and decisions. Objectives are what the stakeholders seek to achieve. Each stakeholder looks to protect his own interests by ensuring his objectives have been met.
What are the objectives of shareholders?
The objective of many shareholders is to influence the governance of the firm to meet their individual objectives and goals. Depending on the percentage of ownership she holds, a shareholder can significantly influence the business’s strategic decisions.
Secondly, what is a stakeholder conflict? Stakeholder conflict arises when the needs of some stakeholder groups compromise the expectations of others. A business has to make choices which some stakeholders might not like.
In this way, why do stakeholders have different objectives?
Different stakeholders have different objectives. The interests of different stakeholder groups can conflict. It will therefore benefit owners but work against the interests of existing staff who will lose their jobs. Customers also suffer if they receive a poorer service.
What is an employee objective?
Employee objectives are performance targets that are agreed between an organization and an employee for a year, half-year or quarter. They are typically designed to be specific, measurable, achievable, relevant and time-bound.
In the current context, the expectations of the shareholders about the profitability of the firm’s internal project, which constitute the basis for the firm’s market valuation, represent a natural aspiration level. Consequently, managers are concerned with meeting the expectations by the shareholders.
Stakeholder theory Stakeholders can affect or be affected by the organization’s actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
External Stakeholders Shareholders have an interest in business operations since they are counting on the business to remain profitable and provide a return on their investment in the business. Creditors that supply financial capital, raw materials, and services to the business want to be paid on time and in full.