What a stakeholder objective is

1. Each group judges the business against its own objective, which follows from the way that group is linked to the firm: owners have money in it, employees draw pay from it, suppliers sell to it, customers buy from it and residents live next to it.
2. Objectives are not all financial, so the residents near a Tesco distribution centre are judging the number of lorries on their road rather than the size of the profit.

What owners and shareholders want

1. High dividend payments: shareholders want as large a share of the profit paid out to them as possible, because the dividend is the cash return on the money they risked.
   1. Dividends can only be paid out of profit, so this objective makes shareholders push for higher revenue and tighter control of costs such as wages.
2. A rising value for their stake: a shareholder in Barclays also gains if the share price rises, so growth in the business matters as well as this year's payout.
3. Profit as income: a sole trader takes the profit directly rather than as a dividend, so for the owner of a single barber's shop the profit is the household income.

What employees want

1. Maximising pay: workers want the highest wage or salary they can get, because that pay is what covers their rent, bills and food.
   1. Pay is a cost to the business and an income to the worker, which is why the same wage rise is read in opposite ways by the two groups.
2. Job security: employees want to know the job will still exist next year, so a permanent contract at the Nissan plant in Sunderland is worth more to a worker than a short-term one at the same rate.
3. Good working conditions: this covers safe equipment, reasonable hours, proper breaks and being treated fairly by managers, and it is why warehouse staff care about targets as well as pay.

What customers and suppliers want

1. Customers want quality and value for money: they want the product to work, to last and to be safe, at the lowest price they can find it, which is why Aldi shoppers compare a basket of branded goods against the same basket at Tesco.
2. Customers also want choice and good service: a wide range, quick delivery, easy returns and staff who can answer a question all count, so a Currys customer judges the after-sales help as well as the price of the machine.
3. Suppliers want prompt payment: being paid within the agreed period, rather than being made to wait 90 days, is often a supplier's first objective.
   1. Late payment starves the supplier's cash flow, because it still has to pay its own staff and materials while it waits.
4. Suppliers want regular repeat orders at a fair price: a steady contract lets a small bakery plan its own production and staffing, so it will accept a lower price per unit for a long-term order.

What the local community wants

1. Jobs for local people: a community wants the business to recruit nearby, because local wages are then spent in nearby shops and the area's unemployment falls.
2. Minimising environmental impact: residents want as little pollution, noise, litter and waste as possible, so a community near a JCB factory cares about emissions from the site and what happens to its scrap.
   1. Traffic is part of this objective, since lorries arriving before six in the morning bring noise and congestion to streets that were quiet before.
3. A business that supports the area: communities want firms to use local suppliers, sponsor local teams and keep buildings and car parks in good order rather than leaving an eyesore.