User:Kaloshilo

Define: Collateral Stakeholders - Businesses and communities affected by business decisions of whom the business or community are is directly connected to in a business agreement.

Stakeholders in business are employees, business partners and financial institutions directly affected by business decision. "S t a k e h o l d e r A n a l y s i s Most consulting projects impact in some way each of five types of stakeholders: customers, stockholders, employees, suppliers, and the community. The importance of considering the interest of all stakeholders is reflected in the mission statements of virtually all major corporations and, as such, provides guidance for consultants in formulating their recommendations." Chase−Jacobs−Aquilano (2005) ''Operations Management for Competitive Advantage, 11th Edition. Operations Consulting and Reengineering'' New York: The McGraw-Hill Companies.

Collateral Stakeholder is a term created by the author Ronald Bradshaw, University of Phoenix MBA student, RESOURCE OPTIMIZATION MBA/550. Managers making business decisions usually tend to think that their decision will only affect the local economy or affect employees working domestically. However, as the economy grows globally a mere change in a decision to change one item in a product can have repercussions globally. For example, suppose that an auto company order parts from China that accounted for over 1 billion dollars in income. These products are shipped via a business West coast shipping that employed ten thousand employees who all live in a small town in California. Once the ship docks and products are loaded onto trucks via a trucking company called California trucking that employs 5000 workers who live in another small town population 10,000.

A decision was made to have the products made from India which required the business to be shipped in from the East using Jones East side shipping and trucking. Therefore, the contract with China is not renewed, which means that the trucking company is no longer needed.

Income lost will affect the housing communities, schools and shopping centers that will have a domino affect across two continents and the money used by these employees that would have gone to recreation activities such as vacations.

This is the meaning of collateral stakeholders.