Answered Essay: Explain in great detail the impact of stake holders on corporations. Then provided three

Explain in great detail the impact of stake holders on corporations. Then provided three examples

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Stakeholders:- A group, person or an organization that has an interest in your business are the stakeholders. For example creditors, employees, suppliers or unions etc. Stakeholders are directly linked to your organizations and can be affected by your organizational policies or objectives. Some of the impacts of stakeholders on corporations are:-

  1. Financial Impact:- As we all know that every organization focus in making more and more money. Company leaders plan their financial duties according to the organizational goals. They take wise decision so that they can minimize cost and generate more revenue that creates a positive bottom line but sometimes the stakeholders involved in the financial management and showing their financial interest to disturb the financial bottom line that will impact the stakeholders as well as the organization
  2. Social Impact:- As to increase their roles in your business they start involving in your organizational social activities so that they can increase the community touch to grow independently that will impact your social image in market and also impact your customers.
  3. Operational Impact:- Employees involved in operational work tries to work in a non-discriminatory work environment to increase their value as a key asset for the organization that will impact your operational management as well. Suppliers expect that they should be paid on time and should provide an equal importance in the business activities that will impact the operational activities.


  1. Supplier impact on operation:- If a supplier is your stakeholder from last many years. If your brand image is very good in the market and everyone relies on your product. Sometimes it happens that if your supplier is supplying one particular product from many years to you and you are not manufacturing that particular product then the suppliers expect that he should provide all the business activities related to that product that will impact the operational and financial management both. If we want to change the product specification or any other thing related to that product then he will start interfering in the business activities.
  2. Stakeholders financial impact:- If one stakeholder is responsible for one particular type of service. But suddenly with the help of sales and marketing department we are able to increase the sale of that service beyond the expected level then stakeholder starts showing their financial interest.
  3. Stakeholders social impact:– If demand of a particular product is increasing day by day then to gain the interest of the market stakeholders starts to interfering into the social activities and showing that they are supplying this product to customers which will impact the brand image.
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