Responding to various stakeholder groups, Financial Accounting

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Q. Responding to various stakeholder groups?

If a company has a solitary objective in terms of maximising profitability then it is only responding to one stakeholder group namely shareholders. But companies can no longer fail to respond to the interests and concerns of a wider range of groups particularly with respect to those who may have a non-financial interest in the organisation. Stakeholder groups with a non-financial interest can thus generate for companies non financial objectives and place constraints on their operations to the extent that the company is prepared to respond to such groups.

Different stakeholder groupings are able to emerge. The following represents example of likely groups their non financial objectives and/or the constraints they may place on a business

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