Understanding Types and Roles of Stakeholders in Business

In Indonesian, stakeholder means stakeholder. That is, they are people who have an interest in the company, its products, services or projects. There are various types of stakeholders, such as company employees, suppliers, vendors, investors, or any partners.

The existence of stakeholders is no joke. They all have an interest in the company. Their actions can determine the company's decisions and work results. Therefore, the existence of stakeholders can determine the future of the company and the way the company works on a daily basis.

Types of Stakeholders in Business

Stakeholders have an interest in the company and their existence can influence or be influenced by the actions of the business as a whole. There are various types of stakeholders in business, namely internal and external.

Internal stakeholders are a group of people from company management and have voting rights. They are the main investors in the company and part of the board of directors. The influence is also large so that it can change company decisions such as employees and owners.

In contrast, external stakeholders are those who do not directly or have no part in internal operations. They have no power in the company's decision-making process and can hardly bring any change into the company.

However, the existence of external stakeholders will influence the running of the company's business. External stakeholders include consumers, investors, shareholders, government and other large communities. The main role is to invest or not invest at all.

Even though they are different, the two stakeholders have something in common, namely that they both want the company to operate well. That way, internal stakeholders will get maximum income, while external stakeholders, such as consumers, will get the best products from the company.

The Role of Stakeholders in Business

Everything about managing to ensure success is one of the roles of stakeholders. However, the role of stakeholders is not only that, there are many other roles that can bring a company to success in the long term.

1. Organize and direct management

Stakeholders can become part of the board of directors, so they can help organize and direct management in the company. They may take over certain departments, such as services, human resources, or product research and development.

2. Attract money into the company

Stakeholders are the company's major investors, and they can bring or take money from the company. Decisions taken by stakeholders will depend on the company's financial performance.

Therefore, they can request financial reports, put pressure on management, and if deemed necessary they will change the company's strategy. Even to change share prices in the market, and make conditions more profitable, stakeholders can increase or decrease investment.

3. Influence decision making

Because they are part of the company's board of directors, stakeholders can influence decision making together with other board members. They can even influence decisions regarding the liquidation and acquisition of a company's business. This is also the reason why stakeholders are always present in all areas of decision making.

4. Convey the company's conscience

Stakeholders will monitor all company activities. They can make companies comply with laws, or social norms that are considered important. Not only that, they will also monitor outsourcing activities and can oppose any business decisions that they feel are detrimental to the company in the long term.

5. Carry out other responsibilities

Apart from these four main roles, stakeholders also have several roles that are no less important in the company. Stakeholders can identify new markets and provide marketing ideas to increase sales.

They may also be part of a selection board or a company representative. If stakeholders can perform their roles well, they can attract other investors to the company.

Stakeholders are the key to management in the company. Therefore, it must be considered seriously. They have rights and obligations that are very important for the future of the company. These roles must be carried out seriously with good work performance, so that they can lead to the desired goals.