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Stakeholder group 
Measure 
Employees
Staff turnover; pay and benefits relative to market rate; job vacancies 
Government
Pollution measures; promptness of filing annual returns; accident rate; 
energy efficiency 
Distributors
Share of joint promotions paid for; rate of running out of inventory 
 EXAM FOCUS POINT 
There is an article on the ACCA website entitled “Communicating core values and mission” that is 
relevant to material in this section. 
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CHAPTER 1
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BUSINESS ORGANISATIONS AND THEIR STAKEHOLDERS 
 
15 
PER performance objectives PO2 requires you to be able to demonstrate your skills in stakeholder 
relationship management. This could cover communications with internal and external colleagues, 
maintaining good business relationships, drafting reports, making presentations, using technology 
effectively and even addressing complaints. It all requires an understanding of stakeholder needs, as 
covered in this chapter. 
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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
16
 
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Organisations can achieve results which individuals cannot achieve by themselves. 

 
An important difference in the list above is between profit orientated ('commercial') and non profit 
orientated organisations. 

 
A non-governmental organisation (NGO) is a legally constituted organisation of people acting together 
independently from any form of government. 

 
Stakeholders are those individuals or groups that, potentially, have an interest in what the organisation 
does. These stakeholders can be within the organisation, connected to the organisation or external to the 
organisation.