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Each
stakeholder brings something different to an organization in pursuit
of their own interests, takes risks in doing so and receives certain
benefits in return but is also free to withdraw support when the
conditions are no longer favourable.
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Shareholders provide financial support in return for increasing
value in their investment but may withdraw their support if the
actual or projected financial return is no longer profitable. Shares
are sold, loans called in, government funding stopped.
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Customers
provide revenue in return for the benefits that ownership of the
product or service brings but may demand refunds if the product does
not satisfy the need and are free to withdraw their patronage
permanently if they are dissatisfied with the service. Offcom
recently stated in the context of broadband services that
“competition is only effective where customers can punish "bad"
providers by taking their custom elsewhere, and reward "good"
providers by staying where they are."
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Employees
provide labour in return for good pay and conditions, good
leadership and job security but are free to withdraw their labour if
they have a legitimate grievance or may seek employment elsewhere if
the prospects more favourable
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Suppliers provide products and services in return for payment on
time, repeat orders and respect but may refuse to supply or cease
supply if the terms and conditions of sale are not honoured or they
believe they are being mistreated
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Society
provides a licence to operate in return for benefits to the
community as a whole and a respect for ethical values, people and
the environment but can censure the organization’s activities
through protest and pressure groups and ultimately regulatory bodies
if these activities are believed to be detrimental to the community.
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