Archive for November 24th, 2006


Connected stakeholders

Shareholders

The shareholders prime expectation is a return on investment whether in the short or long term. As shareholders own the business, this is the prime objective of the organisation.

Shareholder involvement has been encouraged by recent reports on corporate governance. Other reasons like large remuneration for directors has led to increased shareholder pressure. The main way to show dissatisfaction is to sell their shares.

Bankers

Bankers are interested in the overall condition of the firm. A bank is keen to minimise the risk of interest not being paid.

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