3.4.3 Stakeholders vs shareholders

Question 1

Stakeholder

Answer 1

any individual or organisation who has a vested interest in the activities and decision making of a business

Question 2

Examples of stakeholders

Answer 2

• customers
• employees
• suppliers
• managers
• community

Question 3

Internal stakeholders

Answer 3

groups or individuals within an organisation who have an interest in a business

Question 4

External stakeholders

Answer 4

groups or individuals outside of an organisation who have an interest in a business

Question 5

Stakeholders approach

Answer 5

long term view of profitability

- invest in employees as they are in an asset

Question 6

shareholders approach

Answer 6

short term profitability

- spend as little as possible on employees as they are a cost

Question 7

Stakeholder mapping

Answer 7

to help a business prioritise a stakeholder

Question 8

high level of stakeholder power + high level of stakeholder interest

Answer 8

key planners
take notice of them
engage directly with them

Question 9

high level of stakeholder power + low level of stakeholder interest

Answer 9

keep them satisfied

Question 10

low level of stakeholder power + high level of stakeholder interest

Answer 10

communicate regularly with them

Question 11

low level of stakeholder power + low level of stakeholder interest

Answer 11

communicate only when necessary