1.4 Stakeholders

Question 1

Conflict

Answer 1

Refers to situations where stakeholders have disputes or differences regarding certain issues or matters. This can lead to arguments and tension between the various stakeholder groups

Question 2

Customers

Answer 2

The clients of a business. As a key external stakeholder group, they seek to have value for money, such as competitive prices and good quality products

Question 3

Directors

Answer 3

Senior executives who have been elected by the company’s shareholders to address business activities on behalf of their owners

Question 4

Employees

Answer 4

The staff of an organization. They have a stake (an interest and involvement) in the organizations they work for

Question 5

External stakeholders

Answer 5

Individuals and organizations not part of the business but have a direct interest in the activities and performance. Examples include customers, suppliers and the government.

Question 6

Financiers

Answer 6

The financial institutions and individual investors who provide sources of finance for an organization. They are interested in the organization’s ability to generate profits and to repay debts

Question 7

Government

Answer 7

Refers to the ruling authority within a state or country. As an external stakeholder group, the government is interested in businesses complying with the law with regards to the conduct of business activities

Question 8

Internal Stakeholders

Answer 8

Members of the organization, namely the employees, managers, directors and shareholders (owners) of the business

Question 9

Local community

Answer 9

Refers to the general public and local businesses that have a direct interest in the activities of an organization, namely to create jobs and to conduct business activities in a socially responsible way

Question 10

Managers

Answer 10

An internal group of stakeholders responsible for overseeing the daily operations of the business

Question 11

Pressure groups

Answer 11

Consist of individuals with a common concern (such as environmental protection) who seek to place demands on organizations to act in a particular way or to influence a change in their behavior

Question 12

Stakeholder conflict

Answer 12

Refers to differences in the varying needs and priorities of the various stakeholder groups of a business

Question 13

Stakeholder mapping

Answer 13

A model that assesses the relative interest of stakeholders and their relative influence (or power) om an organization

Question 14

Shareholders (or stockholders)

Answer 14

The owners of a limited liability company. Shares in a company can be held by individuals or other organizations

Question 15

Stakeholders

Answer 15

Individuals or organizations with a direct interest (known as a stake) in the activities and performance of a business, such as shareholders, employees, customers and suppliers

Question 16

Suppliers

Answer 16

External stakeholder group that provide a business with stocks of raw materials, component parts and finished goods needed for production. They can also provide commercial services, such as maintenance and technical support