Six Stakeholder Business Score

A framework for evaluating companies by analyzing their relationships with 6 key stakeholders, ensuring long-term sustainability and success.

The Six Stakeholders

• Customers
• Vendors/Suppliers
• Employees
• Investors
• Regulators
• Communities where they operate

Evaluation Method

• Score each stakeholder relationship from A-F
• Goal is to achieve As and Bs across all relationships
• Any score below C represents significant risk
• All stakeholders must "win" for long-term sustainability
• Poor scores in any area can threaten company's existence

Framework Applications

• Job seekers should use it to evaluate potential employers
• Investors can assess company sustainability
• Companies can identify areas needing improvement
• Useful for long-term risk assessment

Real World Example: Airbnb

• Customers (Guests) - Strong positive relationship
• Vendors (Homeowners) - Very positive, generating income from unused assets
• Employees - Generally happy
• Investors - Strong returns
• Regulators - Mixed relationship
  • Some opposition
  • Some support due to tax revenue
• Communities - Challenging relationship
  • Concerns about parties
  • Neighborhood disruption
  • Company actively working to improve through policy changes (e.g., party bans)

Key Principles

• Long-term success requires all stakeholders to benefit
• Risk accumulates where stakeholder relationships are weak
• Companies must actively manage and improve struggling relationships
• Sustainable business requires continuous stakeholder relationship maintenance