1.4 Stakeholders

Question 1

Stakeholder

Answer 1

Anyone with an interest in a business.

Question 2

Types of stakeholders.

Answer 2

• Owners/shareholders
• Employees
• Customers
• Suppliers
• Local community

Question 3

Objectives of stakeholders

Answer 3

• Owners/shareholders: high profit/dividend payments
• Employees: maximising pay
• Customers: wide range of high quality products at reasonable prices.
• Suppliers: frequent orders with on-time payments.
• Local community: reduce environmental/negative impact businesses have on their daily life.

Question 4

Conflicts between stakeholders

Answer 4

• Shareholders and employees: high dividend payments may mean lower pay/training quality/work environment.
• Local community and owners: new factories may be unsightly and cause more noise and air pollution.
• Customers and owners: lower prices with high quality lead to higher costs.