1.1.3 Stakeholders (economic agents) and their objectives Flashcards
(10 cards)
What is a stakeholder?
Anyone with an interest in how a business is run
What do shareholders want?
They want the firm to make a large profit, so the share price increases & the value of their dividend goes up
What do employees want?
They aim for high wages & good working conditions
What do consumers want?
They want goods of a high quality & a low price
What do managers want?
They want to earn large bonuses & salaries, as well as personal benefits such as leisure time & company cars
What do governments aim for?
To earn tax from the firm’s profits, e.g. corporation tax
What do suppliers want?
They want firms to remain in business so they still have customers
What are the issues with different stakeholders in a firm?
Their objectives might conflict e.g shareholders want greater profits for greater dividends while employers want greater profits for better wages
What is corporate social responsibility ( CSR)?
A form of self-regulation where the firm makes sure their actions are good for society
How could a firm use CSR?
1.behaving more ethically e.g. refusing to use cheap labour
2. Reducing its carbon footprint, which would benefit society as a whole
