Stakeholder analysis (stakeholder mapping) is a way of determining who among stakeholders can have the most positive or negative influence on an effort, who is likely to be most affected by the effort, and how you should work with stakeholders with different levels of interest and influence. Parties interested in financial statements there are many people using the financial statements they are assessing the financial statements in terms of profitability, liquidity and solvency. Holding discussions with diverse stakeholder groups but just as many companies are struggling company 5 1 stakeholder engagement strategy understanding of. Users of financial statements there are many stakeholders who are interested in understanding statements of limited companies for different reasons financial statements communicate accounting information to users and therefore they should clearly communicate the following three aspects.
Stakeholder needs are transformed into a defined set of stakeholder requirements, which may be documented in the form of a model, a document containing textual requirement statements or both stakeholder requirements play major roles in systems engineering, as they. Tesco is a plc (public limited company) which means they can sell shares to the public on the stock market being a plc means that tesco is owned by shareholders but is run by a board of directors who have to publish accounts annually. A shareholder owns part of a public company through shares of stock (hence the name), while a stakeholder has an interest in the performance of a company for reasons other than stock performance.
-eg the well publicised decisions of many energy companies in the uk to raise prices substantially for gas and electric have created an outcry however due to the nature of the products, the impact of employees, shareholders, suppliers and creditors has been limited as demand has remained fairly constant. Importance to stakeholders' - 3 - investors are stakeholders that buy shares in a company (baskerville, may 2011) their primary interest in knowing that the company is doing well so that they can put their money into the company for a greater return. Key takeaways key points a corporate stakeholder is a person or group who can affect or be affected by the actions of a business internal stakeholders are entities within a business (eg, employees, managers, the board of directors, investors.
A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees an example of a negative impact on stakeholders is when a company needs to cut costs and plans a round of layoffs. Stakeholders in the healthcare industry include customers/patients, employees/healthcare providers, creditors, shareholders and the government a healthcare stakeholder may be in contact with the healthcare provider or company on a regular basis or may intermittently touch base. Decision making the most common gathering of stakeholders in a publicly traded company is the board of directors, comprised of high-ranking executives and occasional outsiders who hold large amounts of equity in the company. Many times a project team will create the stakeholder analysis by using the stakeholder register and simply adding a greater level of detail to each entry it is recommended to leave these documents separate and create a stakeholder analysis independent of the register.
Agency theory offers a way of understanding why managers do not always act in the best interests of stakeholders t in corporations, agency theory is used to explain the relationship between stockholders and corporate managers, and between upper-level managers and the lower-level managers they supervise. Stakeholder engagement includes the formal and informal ways a company stays connected to its stakeholders (the individuals or parties that have an actual or potential interest in or impact on the company, its operations and financial results. Anyone outside the company such as researchers, students, analysts and others are interested in the financial statements of a company for some valid reason internal and external users the users may be classified into internal and external users.
Basis financial statement the management of company can control the financial of company through financial statements because it gives detail in all kind of financial record to management there are three financial statements (ie profit and loss statement, balance sheet, and cash flow statement. Identify the relevant information for each stakeholder: relevant information are things like their particular interest in the project, their role in the project, their level of authority (position), needs, and expectations of the project. Lesson 7: identify stakeholders 69 as documented in the scope statement 4 stakeholder analysis is a technique used to determine each stakeholder's interest.