Chapter 5 - Stakeholders in a business

Question 1

Who are these stakeholders?

Answer 1

1.Customers
2. Suppliers
3. Employees and their families
4. Local communities
5. Government and government agencies
6. Special interest groups (Trade unions or WWF)
7. Shareholders

Question 2

Roles of stakeholders

Answer 2

Customers
Purchase goods and services-Provide revenue
Suppliers
Supply goods and services
Employees
-provide manual and other labour
Local community
Government
-provide local services-passes laws that restrain many aspects and provides laws to allow business activity-achieves economical stability

Question 3

Rights of stakeholders

Answer 3

Customers
-to receive goods-to be offered replacements

Suppliers
-to be paid on time-to be treated fairly

Employees
-treated within the minimum limits
-be paid according to the contract
-allowed to join a trade union

Local community-to be consulted in major changes
-not too much negative externalities
Government-meet all legal constraints

Question 3

Responsibilities of stakeholders to business

Answer 3

Customers:
- Be honest and dont steal
- Don’t make false claims

Suppliers:
supply goods on time and on quality

Employees:
be honest and do your work according to your
contract cooperate with everybody be ethical

Local community:–
cooperate with business meet reasonable requests from business

Government:
Treat businesses equally and prevent unfair
competition
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establish good trading links with other countries

Question 4

Responsibility to stakeholders by business:

Answer 4

Customer:
- satisfy customers demands
- protect the customer and advertise accurate
- don’t use high pressure selling techniques
= Customer loyalty, repeat purchase, good publicity, good consumer feedback

Supplier:
- pay promptly
- place regular and long-term orders

= supplier loyalty, will meet deadlines , Reasonable credit terms

Government:
- meet legal responsibilities
- pay taxes on time
- complete government statistical forms
- seek export markets

= good relations with
government- might lead to success when
expanding

Employees:
- provide training opportunities
- job security- pay more than minimum wages
- offer good working conditions- involve staff in decision making

= employee loyalty - low labour turnover- easier to recruit new staff- get suggestions for improving efficiency- improved motivation- more effective communication

Question 5

CSR con

Answer 5

• low capital/ reduced profits&raquo_space; used for social responsibility
• can be viewed as window dressing

Question 6

Issues and Conflicts of corporate
objectives

Answer 6

• Must be based on corporate aim and link
• Must be achievable and measureable to motivate employees
• Must be communicated to employees and investors
• Forms framework for strategic objectives
  Time based