In management[ edit ] In the last decades of the 20th century, the word "stakeholder" became more commonly used to mean a person or organization that has a legitimate interest in a project or entity. In discussing the decision-making process for institutions—including large business corporationsgovernment agenciesand non-profit organizations —the concept has been broadened to include everyone with an interest or "stake" in what the entity does. This includes not only vendors, employeesand customersbut even members of a community where its offices or factory may affect the local economy or environment. In this context, a "stakeholder" includes not only the directors or trustees on its governing board who are stakeholders in the traditional sense of the word but also all persons who paid into the figurative stake and the persons to whom it may be "paid out" in the sense of a "payoff" in game theorymeaning the outcome of the transaction.
What do we mean by stakeholders and their interests? Why identify and analyze stakeholders and their interests? Who are potential stakeholders? When should you identify stakeholders? How do you identify and analyze stakeholders and their interests? The Community Tool Box is a big fan of participatory process.
That means involving as many as possible of those who are affected by or have an interest in any project, initiative, intervention, or effort. We believe strongly that, in most cases, involving all of these folks will lead to a better process, greater community support and buy-in, more ideas on the table, a better understanding of the community context, and, ultimately, a more effective effort.
In order to conduct a participatory process and gain all the advantages it brings, you have to figure out who the stakeholders are, which of them need to be involved at what level, and what issues they may bring with them. Maximizing Community Stakeholders' Engagement is a video by Tom Wolff that works as a great supplement to this section; both offer thorough examinations of how to find and involve the right stakeholders and respond to their needs.
Stakeholders are those who may be affected by or have an effect on an effort.
They may also include people who have a strong interest in the effort for academic, philosophical, or political reasons, even though they and their families, friends, and associates are not directly affected by it. One way to characterize stakeholders is by their relationship to the effort in question.
Primary stakeholders are the people or groups that stand to be directly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization. In some cases, there are primary stakeholders on both sides of the equation: A rent control policy, for example, benefits tenants, but may hurt landlords.
Secondary stakeholders are people or groups that are indirectly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization. A program to reduce domestic violence, for instance, could have a positive effect on emergency room personnel by reducing the number of cases they see.
It might require more training for police to help them handle domestic violence calls in a different way. Both of these groups would be secondary stakeholders. Key stakeholders, who might belong to either or neither of the first two groups, are those who can have a positive or negative effect on an effort, or who are important within or to an organization, agency, or institution engaged in an effort.
The director of an organization might be an obvious key stakeholder, but so might the line staff — those who work directly with participants — who carry out the work of the effort. Other examples of key stakeholders might be funders, elected or appointed government officials, heads of businesses, or clergy and other community figures who wield a significant amount of influence.
While an interest in an effort or organization could be just that — intellectually, academically, philosophically, or politically motivated attention — stakeholders are generally said to have an interest in an effort or organization based on whether they can affect or be affected by it.
The more they stand to benefit or lose by it, the stronger their interest is likely to be. The more heavily involved they are in the effort or organization, the stronger their interest as well. A few of the more common: An employment training program might improve economic prospects for low-income people, for example.
Zoning regulations may also have economic consequences for various groups. An effort to improve racial harmony could alter the social climate for members of both the racial or ethnic minority and the majority. Involving workers in decision-making can enhance work life and make people more satisfied with their jobs.
Flexible work hours, relief programs for caregivers, parental leave, and other efforts that provide people with time for leisure or taking care of the business of life can relieve stress and increase productivity.
Protection of open space, conservation of resources, attention to climate change, and other environmental efforts can add to everyday life. These can also be seen as harmful to business and private ownership. Free or sliding-scale medical facilities and other similar programs provide a clear benefit for low-income people and can improve community health.
Neighborhood watch or patrol programs, better policing in high-crime neighborhoods, work safety initiatives — all of these and many other efforts can improve safety for specific populations or for the community as a whole.
Community mental health centers and adult day care can be extremely important not only to people with mental health issues, but also to their families and to the community as a whole.
The most important reason for identifying and understanding stakeholders is that it allows you to recruit them as part of the effort. The Community Tool Box believes that, in most cases, a participatory effort that involves representation of as many stakeholders as possible has a number of important advantages: It puts more ideas on the table than would be the case if the development and implementation of the effort were confined to a single organization or to a small group of like-minded people.
It includes varied perspectives from all sectors and elements of the community affected, thus giving a clearer picture of the community context and potential pitfalls and assets. It gains buy-in and support for the effort from all stakeholders by making them an integral part of its development, planning, implementation, and evaluation.
All stakeholders can have a say in the development of an effort that may seriously affect them.Community-based learning is also motivated by the belief that all communities have intrinsic educational assets that educators can use to enhance learning experiences for students, so stakeholders are necessarily involved in the process.
A stakeholder is anyone who is involved in the welfare and success of a school and its students, including administrators, teachers, staff, students, parents, community members, school board members, city councilors and state representatives.
Superintendents must manage community stakeholders, including the school board in order to maintain their jobs and gain support for schools (Carloss, ; Thiemann and Ruscoe, ).
Parents are valuable primarily as volunteers and collaborators in at-home education (Simon, ). Identify Key Stakeholders.
Training programs that have the most impact on workplace performance are those in which trainers, training program participants and their managers work closely together to ensure the right conditions are in place for learning and application on the job.
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 .
Engaging Stakeholders. Development is an inherently collaborative process and so engaging with stakeholders is essential when designing and implementing effective development strategies, projects, and activities. A collaborative learning community of development professionals.