Stakeholders (economic agents) and there objectives Flashcards
unit 1.1.3 (24 cards)
What is a creditor ?
an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract
What are the stakeholder groups ?
shareholder
customer
employee
government
suppliers
creditors
the local community
What do shareholders want ?
ROI
high dividends
What do customers want ?
good quality products
fair price
good customer service
What do employees want ?
fair pay
good working conditions
What does the government want ?
taxes paid
employment law followed
What do suppliers want ?
regular business
customer loyalty
What do creditors want ?
repayment
regular business
What does the local community want ?
environmentally friendly
CSR
maybe bring tourism
What is CSR ?
firms now focusing on wider community not just shareholders
What are the internal influences when dealing with stakeholders ?
leadership style
objectives
size of business
What are the external influences when dealing with stakeholders ?
market conditions
stakeholder power
government politics
What is the stakeholder mapping model ?
high interest high power = key players
high interest low power = keep informed
low interest low power = minimal effort
low interest high power = keep satisfied
What are economic agents ?
economic decision makers who know that different factors influence and motivate different economic groups
What are the 3 economic agents ?
consumers
government
firms
What are consumers ?
consumers of the products/services generally by financial purposes :high street/online
What is the government ?
providers of the law on how consumers and firms should interact with each other
What will it mean for an economy to have higher levels of income ?
better service sectors
What are firms ?
those who transform factors of production into goods/services that can be sold
What are the 3 sectors ?
public (govt controlled)
private (self controlled)
voluntary
What is the principal agent problem (agent = manager principal = shareholder) ?
asymmetric information when agents are more likely to act in their own interest e.g shareholders and managers with dividends vs bonus
What are the two value judgments ?
positive and normative statements
What is a positive statement ?
a statement that describes a fact/phenomenon or relationship in the world based on evidence and can be tested - objective
What is a normative statement ?
a statement that involves value judgements about what should be, not based on facts and cannot be tested - subjective
