Stakeholder concept is derived from general system theory that all living organisms system) interact with, and are affected from the environment. The major key for survival of the system is the ability to adapt to be responsive to the changing conditions in the environment. This concept seems to have emerged initially in the system analysis work on organisation conducted by researches at the Tavistock Institute in London (Mason and Mitroff, 1981:p.43). It is widely used in management science, political science, and public administration. For an organism such as modern business corporation or government, system thinking provides a power tools to help managers appreciate the differences between their companies and the rest of the world.
William N. Dunn (1994:p.85) clarifies that policy stakeholders are individual or group who have a stake in a policy because they affect or are affected by government decisions. Frederick and et. al. (1992:p.7-8) defines stakeholders in term of business management as a group or groups "affected by corporation's decisions, policies and operations".
The stakeholder group can be, for example, citizen's groups, labour unions, political parties, government agencies, elected leaders, and policy analysts often respond in markedly different ways to the same information about the policy environment and conversely.
"Stakeholders are all those claimants inside and outside the firm who have a vested interest in the problem and its solution" and "[they] are the concrete entities that affect and in turn are affected by a policy" (Mason and Mitroff, 1981:p.43, 95).
Stakeholder Analysis therefore identifies important groups of people or individuals that can have an influence on the organisation. These stakeholders can have their objectives and views, which may differ and conflict with other stakeholders. A Stakeholder Analysis is required to identify all the parties who are directly or indirectly affected by the enterprise's operations. It...