1.4 Stakeholders Flashcards
stakeholder
any individual or group that affects, or is affected by, an organisation
internal stakeholder
directly involved inside organisation
managers
run organisation
employees
work for company
shareholders
owners of company
internal stakeholders list
managers
employees
shareholders
external stakeholders
not directly involved inside organisationc
customers
purchase products of business
suppliers
sells goods/services to organisations
governments
protect public interest
labour unions
protects workers rights and livelihoods
banks
ensure loans are paid back
society
holds business accountable
pressure groups
influence actions of businesses related to social or environmental causes
external stakeholders (list)
customers
suppliers
government
labour unions
banks
society
pressure groups
managers and employee conflict + solution
managers want to maximise productivity and employees want to work with less stress
solution: performance-related pay
shareholder and manager conflict + solution
shareholders want to maximise profits and managers want to reinvest
also, managers want to look after personal interests before shareholders’
solution: stock options to buy shares to managers
shareholders and government conflict
government wants taxes to be paid and shareholders want to minimise taxes
local community and shareholders conflict
shareholders want to maximise returns on investment and local community wants sustainability
managers and union conflict
managers want to oppose unions’ intervention in manager-employee relations
customers and suppliers conflict
customers want high quality and low price, while suppliers want to be paid fairly
pressure groups and employees conflict
pressure groups may want to oppose certain projects which provide employment
