1.4 Stakeholders Flashcards
1
Q
Defi of stakeholders
A
People with an interest in the business
2
Q
What are the 4 methods of stakeholder conflict resolution
A
Arbitration
Worker participation
Profit sharing schemes
Share ownership schemes
3
Q
A/DA of arbitration?
A
Efficient, legally binding
Costly, lose-lose situation
4
Q
A/DA of worker partipation
A
Motivation
Waste resources + leakage of sensitive information
5
Q
A/DA of profit sharing schemes
A
Motivation to work with long-term mindset
Reduce retained profits & dividends paid out to shareholders
6
Q
A/DA of share ownership schemes
A
Motivation
Admin costs, negative impact if share price falls, dilution of ownership
