1.4 Flashcards
define stakeholder
individuals, businesses, or groups with a vested interest in the activities and outcomes of a specific organisation
what is internal stakeholder
- employee
- manager
- director(executive)
- shareholder(business owner)
what is external stakeholder?
- customer
- competitor
- pressure group(organizations that try to influence government policy through demonstrations and protests)
- supplier
define conflict
mutually exclusive and incompatible interests of different stakeholder groups
e.g. employees demand higher wages
senior managers and directors demand large bonuses
share ownership schemes
enables workers to purchase shares in the company at a discounted price
arbitration
considering the perspectives of all parties involved in the dispute
all stakeholder groups in conflict need to agree with the decisions made by arbitrator
employee
workers within an organisation
interrelated interests:
* better pay and bonuses
* improved job security
* equal opportunities
managers
people hired to be responsible for overseeing certain functions, operations or departments within an organisation
3 broad levels of management:
* senior management
team of higher ranking managers or directors
oversee the long term aims
* middle management
group of managers in charge of running individual departments
set deparmental objectives
* junior management
aka supervisor (lower ranking mangers)
in charge or monitoring and controlling day to day routine tasks
interests of managers:
* aim to improve salaries,bonuses
* aim to improve customer relations
directors (executives)
senior managers who are legally responsible for the overall running of a company on behalf of their shareholders
directors responsible for each key functional area of an organization: marketing, HR, finance and accountant, operation management
there are two types:
* executive directors
work full time and make key strategic decisions
* non executive directors
dont work at the organisation but are consultant
advise the board of directors on coperate strategy
responsibilities:
* advising and supporting the CEO
* monitoring the organisation overall activities and financial results
* identifying people with significant control (PSC)
1. more than 25% of shares in the company
2. more than 25% of voting rights in the company
interests of directors:
* concerned with the organization’s return on investment
shareholders(stockholders)
people or other organizations that buy shares in the company
The interests of shareholders of a limited liability company:
* They also have voting rights on how the company should be run
* expect regular payment of dividends
customer
firm’s clients who pay for the goods and/or services of the business
interests of customers:
customers want value for money
Customers strive for cheaper
Competitors
organization’s rival businesses competing in the same industry
interests of competitors:
* interested in benchmark data to measure their own performance
* interested in the organization’s operations, such as its product range and pricing strategies
Financiers
commercial banks, investors, insurance companies, and other financial backers that provide finance for a business
aka financial lenders
interests of financiers as an external stakeholder group:
* expect regular and prompt repayment
* interested in the financial health of an organization (ability of the business to repay)
Labour unions (trade unions)
organization that aims to protect the interests of its worker members
it focuses on the terms and conditions of employment
Pressure groups
organizations consisting of like-minded individuals who come together for a common cause or concern
e.g. Greenpeace
put pressure on organizations to operate in a socially responsible and ethical way, such as the fair treatment of workers
