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, customers 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 organisation. They have a stake (an interest and involvement) in the organisation they work for

Question 5

External stakeholders

Answer 5

Are individuals and organisations not part of the business but have a direct interest in its 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 organisation. They are interested in the organisation’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

Are members of the organisation, 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 organisation, namely to create jobs and and to conduct business activities in a socially responsible way.

Question 10

Managers

Answer 10

Are an internal group of stakeholder 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 organisations to act in a particular way or to influence a change in their behaviour.

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

is a model that discusses the relative interest of stakeholders and their relative influence (or power) in an organisation

Question 14

Shareholders (or stockholders)

Answer 14

are the owners of a limited liability company. Shares in a company can be held by individuals or other organisation

Question 15

Stakeholders

Answer 15

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

Question 16

Suppliers

Answer 16

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