2: Stakeholders Flashcards
(16 cards)
What is a stakeholder?
any person or group of people who have an interest(stake) in the success of business
Can be either internal or external.
What are some internal stakeholders
Shareholders
Managers
Employees
What is an internal stakeholder
Those who are employed or are members within a company or organisation and want it to succeed
Why do shareholders have a stake in the business
Want the value of their shares and the dividend payments associated with the shares to do good as it depends on success of business
Why do managers have a stake in the business
Want business to do well due to their job and salaries being dependant on the business
Why do employees have a stake in the business
Want business to do well due to their wages and having a job to go to and earn money
Whats an external stakeholder
People outside the business who want them to succeed or do good for variety of reasons
What are some external stakeholders
Customers
Suppliers
Local Community
Government
Competitors
Creditors (lenders)
Environmental Pressure groups
Why do customers have a stake in the business
They will be interested in price of electricity, quality of product and the standard of service received
Why do suppliers have a stake in the business
If business is a success they are more likely to get more orders or business from them as a result
Why do local communities have a stake in the business
They have concerns about impact firm has on local environment and will also have concerns about level of employment in the area
Why do the government have a stake in the business
More profitable the business is the more it will pay in corporation tax so more money is generated as well as more employees paying more tax
Why do competitors have a stake in the business
Will have a keen interest in the relative price and quality of competitions products or services
Why do creditors(lenders) have a stake in the business
If firm is successful then they are more likely to pay them in full and on time
Why do Environmental Pressure Groups have a stake in the business
They want to protect the environment and ensure the business has interests in taking care of the environment
What are creditors
People who have supplied goods and services to the firm or lent money to the business but have yet to receive payments
