1.4 Stakeholders

Question 1

Conflict

Answer 1

Conflict 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

Customers are 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

Directors are 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

Employees are the staff of an organization. Tey have a stake
(an interest and involvement) in the organization they work for.

Question 5

External stakeholders

Answer 5

External stakeholders are individuals and organizations 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

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

Question 7

Government

Answer 7

Government 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

Internal stakeholders of a business are members of the
organization, namely the employees, managers, directors and
shareholders (owners) of the business.

Question 9

Local community

Answer 9

Te local community 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

Managers are an internal group of stakeholder responsibly for
overseeing the daily operations of the business.

Question 11

Pressure groups

Answer 11

Pressure groups 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 behaviour.

Question 12

Pressure groups (2)
(from an official markscheme)

Answer 12

Pressure groups are external stakeholders (groups of people who share a common interest) who try to influence the decisions made by an organization.

Question 13

Stakeholder conflict

Answer 13

Stakeholder conflict refers to differences in the varying needs
and priorities of the various stakeholder groups of a business.

Question 14

Stakeholder mapping

Answer 14

Stakeholder mapping is a model that assesses the relative
interest of stakeholders and their relative influence (or power)
on an organization.

Question 15

Shareholders / Stockholders

Answer 15

Shareholders (or stockholders) are the owners of a limited
liability company. Shares in a company can be held by
individuals and other organizations.

Question 16

Stakeholders

Answer 16

Stakeholders are 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 17

Suppliers

Answer 17

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