Why Stakeholder Analysis

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	Why Stakeholder Analysis? If that carrot-at-the-end-of-the-stick tactic seems useless to get commitment from your stakeholders, try to make a good stakeholder analysis. Commitment is important in any relationship. It is the value that galvanises diverse entities so that all can work together unilaterally and seamlessly. Without it, there is no bond and no common purpose. Romantic, family or even business-wise, commitment is the force that drives the relationship forward, toward a mutually desirable goal that usually points to growth and/or profitability.	Wow
Stakeholder analysis helps administrators and advisors to assess a project environment, and to inform ODA's negotiating position in project talks. More specifically, doing a stakeholder analysis can: Draw out the interests of stakeholders in relation to the problems which the project is seeking to address (at the identification stage) or the purpose of the project (once it has started). Identify conflicts of interests between stakeholders, which will influence ODA's assessment of a project's riskiness before funds are committed (which is particularly important for proposed process projects). Help to identify relations between stakeholders which can be built upon, and may enable "coalitions" of project sponsorship, ownership and cooperation. Help to assess the appropriate type of participation by different stakeholders, at successive stages of the project cycle.

Maximising Shareholder Wealth

In the theory of accounting and finance, it is assumed that the objective of the business is to maximise the value of a company. Put simply, this means that the managers of a business should create as much wealth as possible for the shareholders. Given this objective, any financing or investment decision that is expected to improve the value of the shareholder's stake in the business is acceptable. In short, the objective for managers running a business should be profit maximisation. both in the short and long-term.

In recent years, a wider variety of goals have been suggested for a business. These include the traditional objective of profit maximisation (in other words - the shareholder concept has not been abandoned). However, they also include goals relating to earnings per share, total sales, numbers employed, measures of employee welfare, manager satisfaction, environmental protection and many others.

A major reason for increasing adoption of a Stakeholder Concept in setting business objectives is the recognition that businesses are affected by the "environment" in which they operate. Businesses come into regular contact with customers, suppliers, government agencies, families of employees, special interest groups. Decision makings done by a business are likely to affect one or more of these "stakeholder groups".

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