Stakeholders Flashcards
(14 cards)
Difference between stakeholders and shareholders
Stakeholders have an interest in the business. They may work for or transact with the business.
Shareholders own the business and may work in the business. They are interested in growing the value of their shareholding. A shareholder is an example of a stakeholder.
What are the three groups stakeholders can be grouped into
Internal: to the business
- employees
- shareholders/owners
Connected: relationship based on a contract
- customers
- suppliers
- creditors (who the business owes money to)
External: relationship not based on a legal contract
- competitors
- government
- society/ the wider community
- pressure groups
What objectives relate to shareholders/owners
- return on investment, profits + dividends
- success and growth of business
What objectives relate to managers and employees
- rewards (eg basic pay, financial incentives)
- promotion opportunities and job satisfaction
What objectives relate to customers
- value for money
- product quality and customer service
What objectives relate to suppliers
- profitable trade
- financial stability
What objectives relate to banks and other financial providers
- repayment
- profitability and cash flows of the business
- growth in profits and value
What objectives relate to government
- collection/payment of taxes
- help growth, creating jobs
What objectives relate to local community
- success, creating and retaining jobs
- compliance with local laws and regulations eg noise or pollution
What objectives relate to pressure groups
- business acts honestly and fairly in best interests of customers, society, the environment etc
Influences employees have on a business
Direct action (strikes)
Influences suppliers have on a business
Negotiation
(Better t&cs)
Influences stakeholders in general have on a business
Voting on business decisions
Influences employees have on a business if they’re not happy with suggested changes
Refuse to co operate / work to rule (bare minimum)
