Professional Ethics

Lec # 3
Stakeholder Approach
by Khadija Ejaz

Stake
It is any interest or share.
If you have a stake in something, it
is important to you because you have a
personal interest or involvement in it.
For example: Employers have a stake in
the training of their staff.

Stakeholder
It is any individual or group who can affect
or is affected by the actions, decisions,
policies, practices or goals of the
organization.
For example: customer, owner,
employees, government, competitor,
supplier, trade unions etc.

Primary Stakeholders
usually internal stakeholders, are those
that engage in direct economic
transactions with the business.
For example stockholders, customers,
suppliers, creditors, and employees

Secondary Stakeholders
usually external stakeholders, are those
who - although they do not engage in
direct economic exchange with the
business
For example the general public,
communities, activist groups, business
support groups, and the media