LESSON 1.4

Question 1

Conflict

Question 2

External stakeholders

Question 3

Customers (products that meet needs & wants - don’t harm customer)

Question 4

Financiers

Question 5

Government

Government has significant influence on a business because..

Unfair business practices are avoided
The correct amount of corporate tax is paid
Health and safety standards at work are met
Compliance with employee legislation occurs
Consumer protection laws are upheld

Question 6

Pressure groups

Question 7

Local community

Question 8

Suppliers (want to be paid on time/stability/retain client/good prices for work)

It is important to establish a good working relationship with suppliers in order to receive quality stocks on time and at a reasonable price - some offer preferential credit terms

Question 9

Internal stakeholders

Question 10

Employees (financial & non-financial wants)

Employees are likely to strive to improve their pay, working conditions, job security, etc.

It is important to treat employees well because demotivated workers are unlikely to produce good quality products or deliver good customer service

Question 11

Directors

Question 12

Managers

Question 13

NOTE: MANAGERS & DIRECTORS GET
- CASH COMP.
- RETIREMENT PACKAGES
- EXECUTIVE PERKS

they will aim for profit maximization and look at the long-term financial health

Question 14

Shareholders/Stockholders (focused on ROI - long-term strategic decisions may cause for reinvestment of profit and deferred dividend payments)

Question 15

Stakeholder conflict

Question 16

Stakeholder Mapping

Question 17

Stakeholders

Question 18

Mutual benefits of stakeholders’ interests

Answer 18

If you meet the needs of employees, you will get quality products and more sales, which makes shareholders happy because their dividends increase