1.4 - Stakeholders Flashcards
What are the main stakeholders of a business?
- The Government
- Employees
- Shareholders
- Suppliers
- Community
- Customers
What are the objectives of employees?
Secure jobs, higher earnings
What are the objectives of Owners/Shareholders?
High dividends and share price
What are the objectives of the Local Community?
Local jobs, minimise environmental impact
What are the objectives of the Government?
Legal behaviour, taxes paid, growth
What are the objectives of suppliers?
Paid on time, kept informed of changes to business decisions like a reduction in output.
Customers
Useful, accurate information of the product, good service and value for money
What is a dividend?
A financial rewaed paid out to a shareholder each year
How does a business have an impact on the employees of a business?
Affect the number of people employed by a business and how much they earn
How could a business have an impact on the local community?
May try to employ local people, may invest in local facilities, may increase congestion in the area
How could a business have an impact on their suppliers?
Does the business pay on time? Does it pay a fair price or use it’s power to push it down? Does it have a positive relationship with suppliers or force several to compete?
How could a business have an impact on shareholders?
Success of a business would affect the share price and the dividends paid to the shareholders.
How could a business affect the government?
Could attempt to avoid taxes
How could stakeholders affect a business
- Negotiation
- Strike
- Councils can refuse to cooperate
- Owners can vote on what a business shall do next
