3.2.3 Flashcards
Stakeholder
Anyone with an interest in the actions of a business
Primary stakeholders
Have a direct relationship with the business
Primary stakeholders
Have a direct relationship with the business
Secondary stakeholders
Affected by actions of a business but not directly related to the business
Social responsibility
Duties a business has towards stakeholders, should operate within the law avoiding pollution, reckless use of limited resources and mistreatment of employees and consumers
Stakeholder mapping
Stakeholder needs are considered when making decisions, help inform decision making
Maps relative power of each stakeholder group against degree of interest
Helps inform managers how important each stakeholder group is and how involved they should be in decision making process
Example of consumer needs
Reliable supply of goods
Clear pricing policies
Safe products
After sales service and technical support
Example of employee needs
Steady and regular income
Safe working conditions
Job security
Examples of shareholders needs
Steady return on investment in form of dividends
Investment that does not lose value
Preferential treatment as customers
Example of government needs
Funding via taxes
Creation of jobs and wealth for the population
Provision of goods and services for population
Example of community needs
Steady employment
Avoidance of pollution and noise
Provision of facilities
Example of supplier needs
Frequent and regular orders
A sole supplier agreement
Fair prices
Example of financial institutions needs
Loans, ensure businesses pay in full and on time
Stakeholder engagement
Communication and consultation
Approaches to stakeholder management
Partnership
Participation
Consultation
Push communication- one way communication
Pull communication- stakeholders only engage if they want to
