1.4 Stakeholders Flashcards
Definition of stakeholder
any person or organization with a direct interest in, and is affected by the activities and performance of a business.
Definition of shareholder
are the owners of a limited liability company. Shares in a company can be held by individuals and other organizations.
Definition of internal stakeholder
members of the organization, people who work for the business who are INSIDE the business and involved daily. They each have interests relating to the business.
What are the three types of internal stakeholders
-Owners / shareholders - profits, growth, increase in value of business, maximise dividends, achieve capital gain
-Managers and directors - salary, maximise benefits, promotion, status, long0term financial health
-Staff / Employees - pay, working conditions, job security, promotion
Definition of external stakeholder
do not form part of the business but have a direct interest or involvement in the organization.
What are the five types of external stakeholders
Customers - price, customer service, quality
Competitors - rivalry for motivation, benchmark performance
Government - observe laws, pay taxes, create wealth & employment
Pressure groups (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.)- whatever their particular focus is (mainly that business operates ethically)
Suppliers - sales, payment as agreed, good working relationships
Four types of stakeholder conflict
Employees vs Managers/owners - cutting staff benefit for profit
Supplier vs business - paying full price for supplies vs discounts for bundles
Directors vs Shareholders - fairer distribution of profits to shareholders/employees instead of overpaid management vs more pay for top management because high risk and decision making
Owners vs pressure groups
Owners vs government
