1.4 Flashcards
Stakeholder
Any person/organisation with a direct interest in and is affected by the activities and performance of a business
Internal and external stakeholders
Internal stakeholder: individual/group that work within the business
external stakeholder: individual/group that is outside the business but has interest in the business
Internal stakeholder examples
Shareholders
Managers
Employees
Interest of shareholders (owners of the company)
- get return on investment, so want business to make high profit
- want high dividends
Interest of managers (run the organisation)
- set aims and objectives
- want high profit to receive benefits such as bonuses
Interest of employees (work for the organisation but dont manage other workers)
- high pay
- working conditions
- security
- promotion opportunities
Customers interest (individuals/organisations that purchase the output of the business)
- if product meets needs
- good price and quality
- brand image
Suppliers (provide w resources) interest
- good working relationship with business
- timely payments
government interest
- how business operates
- correct tax
- workers health and safety
Local communities interest
- protect environment
- stable employment/ create jobs
lenders interest
- to ensure that the business can repay
- want interest on the loan
Pressure groups
Individuals with a common interest who seek to influence a change in the business’s behaviour because of a cause
- environment/social protection
- want business to change decisions and actions
common interest
influence change
business
Things that pressure groups can do
- boycotting: harmful publicity to refuse ppl to buy product
- lobbying: influence a legislator on an issue
- direct actions, e.g. protests
- public relations: getting positive publicity on a specific cause (spreading awareness)
