Question

"Stakeholders can have both positive and negative impact on a commercial organisation." Comment.

Answer 1

Stakeholders can have both positive and negative impacts on a commercial organisation. On the positive side, stakeholders provide the necessary resources and support to businesses. A business enterprise gets finance, labour, raw materials, machinery, etc., from its stakeholders. It sells and distributes its products and services through them. In times of distress, stakeholders (e.g. banks and the Government) may provide the necessary support. On the negative side, stakeholders may block or interrupt the functioning of an enterprise when their expectations are disregarded.