Stakeholders

In this lesson

1. 0:00 Lesson three Ethics and Governance
2. 0:37 Section one Stakeholders
3. 1:02 Internal and external stakeholders explained
4. 1:36 Stakeholder interests and examples
5. 3:28 Agency theory and principal-agent relationships
6. 4:37 Agency costs and misaligned incentives
7. 6:00 Stakeholder conflicts in practice
8. 7:06 Investment and dividend decisions
9. 9:00 Managing stakeholder conflicts strategically

About this lesson

This lesson covers the definition and types of stakeholders (employees, shareholders, customers, suppliers, and others), explores agency theory and the conflicts that arise when managers' interests diverge from shareholders' interests, and provides practical strategies for balancing stakeholder needs. You'll see real examples of common conflicts—cost cutting, investment decisions, dividend policy, and financing choices—and learn how to navigate these situations by prioritising shareholder wealth creation whilst maintaining stakeholder relationships through consultation and transparent decision-making. Understanding stakeholders is essential for SBL and E3 papers, where you'll analyse business scenarios involving multiple competing interests. This foundation helps you recognise when agency costs emerge and how to propose solutions that create long-term value without damaging relationships with key stakeholder groups.

Duration: 11m