1.5 Stakeholders In Business

Question 1

Why are employees considered stakeholders?

Answer 1

Employees are stakeholders because they can benefit from a business’s success through pay rises, bonuses, promotions, and better job security. Conversely, if a business fails, they lose their jobs and source of income.

Question 2

How can employees affect a business?

Answer 2

Employees can affect a business by taking industrial action if they feel mistreated. This includes actions like going on strike and work-to-rule.

Question 3

What are the interests of customers as stakeholders?

Answer 3

Customers’ interests include the quality, price, range, availability of products, and customer service that the business offers.

Question 4

How can customers influence a business?

Answer 4

Customers can influence everything from sales and profits to reputation and overall business performance.

Question 5

Why are Suppliers stakeholders?

Answer 5

Suppliers’ interests include the size of order (to make sales) and payment (to earn profit).

Question 6

What are the interests of the Government as stakeholders?

Answer 6

Government interests include decreasing unemployment rates and increasing the tax paid to the government.

Question 7

What are local community’s interests as a stakeholder?

Answer 7

Business bringing jobs into their area, if a business does well it will attract more businesses to start up in that area creating jobs and more good services for the local community.

Question 8

What are owners interests as a stakeholder?

Answer 8

Owners interests are to make profit, expand their business, gain good reputation.