Economics

Study Notes

Stakeholders (Government Intervention)

Level:
AS, A Level
Board:
AQA, Edexcel, OCR, IB

A stakeholder is any person or organization that has a legitimate interest in a specific project or policy decision.

As an economist, whenever you are required to discuss the costs and benefits of an example of government intervention it is worth asking yourself "who are the major stakeholders in this issue?"

The decisions of government, businesses and other organisations inevitably affect different groups within society. Increasingly, many businesses are taking into account the effects of their actions not just on the value that such decisions create for shareholders – but also to a broader range of stakeholder groups.

Typically stakeholder issues come into play on major infrastructural projects where a cost benefit analysis might be undertaken to assess the likely social costs and benefits – it is important to bring as many stakeholders into the picture as possible – many people might be affected,

Examples of stakeholders you might think of bringing into a discussion

  1. Employees of a business / organisation (who may / may not be members of a union)
  2. Communities where a business is located or affected directly by a decision
  3. Suppliers to a particular business (e.g. back down the supply chain)
  4. Shareholders and other investors / financiers
  5. Creditors (people owed money)
  6. Government (and through them – taxpayers)
  7. Trade unions (and the workers they represent)
  8. Professional associations
  9. NGOs and other advocacy groups (i.e. World Bank, IMF, Pressure Groups)
  10. Prospective employees
  11. Prospective customers
  12. Local communities
  13. National communities
  14. International community
  15. Competitors within a market

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