3.2.3 The role and importance of stakeholders Flashcards
6 what is a stake holder
an individual or group or other institution with a direct interest in the activities and performance of a business or in a project to be undertaken by a business
6 who are stakeholders of Holt
students
employees
governors
parents
6 what is an internal stakeholder
a group closely connected to the organisation
business owners, suppliers etc
6 what is an external stakeholder
customers, competitors, government agencies, pressure groups, etc
6 who are primary stakeholders
those directly involved in and affected positively or negatively
have the power to influence decisions and can be internal or external
customers, suppliers, shareholders
6 who are secondary stakeholders
internal or external who are intermediaries who are indirectly affected by company actions
trade unions, government
6 who are key stakeholders
primary or secondary but will have significant influence upon importance in an organisation
customers, employees
6 what is a trade union
organisation of workers seek through collective bargaining with employees to protect and improve the real incomes of members, job security and other non-work related services including compensation for injury at work
7 what are shareholder needs
Profits to allow high dividends
Growth & positive corporate image for long-term growth and share price rises
7 what are employees needs
Job security
Good working conditions
High levels of pay
Promotion opportunities
To be consulted about changes that might impact them
7 what are managers needs
High status
High pay
High bonuses
Job security
Further the interests of their department and in turn their careers
7 what are trade union needs
To be consulted and take an active part in the decision-making process in order to ensure decisions benefit their members
7 what are customer needs
High quality products
Fair prices
Good service
Wide choice
7 what are suppliers needs
Regular orders
Fair prices
Prompt payment
Advance notification of any changes
7 what are banks and investors needs
Full and prompt repayment of loans plus interest
7 what are local community needs
Local employment opportunities
Socially responsible behaviour (e.g. air pollution / traffic)
7 what are pressure groups needs
For the activity to have neutral or beneficial impact on the environment
7 what are central government needs
Provide employment and training
Comply with legislation on consumer protection, competition policy, employment, health and safety and the environment
Pay corporation tax on profits
7 what are local government needs
As above and also to make a positive contribution to local community
To be consulted on plans for expansion or movement
7 what conflict do employees and managers have
Job security and high wages may increase costs vs cost targets and potential high bonuses paid if improved cost efficiency
7 what conflict to customers and shareholders have
Good quality products and low prices may reduce prices vs high profits and high dividends if prices are higher
7 why would local community and shareholders have conflict
Reducing impact on local environment may have high cost vs lower costs leading to higher profits and therefore dividends
7 what is a win-lose approach
Where an organisationplays off stakeholdergroups.
One group gainingleads to another losing
A firm will find it difficult to meet all the needs of its stakeholders
7 what is a win-win approach
More integrated toimprove all stakeholderneeds
Improving one area can have knock-onbenefits forothers
A firm, can cause the pot of benefits to grow
Better conditions and rewards for employees
