3.4.3 Flashcards
Define stakeholders
Stakeholders are people with an interest in a business or an organisation.
Define shareholders
Shareholders are people which have an internal interest in a business or organisation
Give some examples of shareholders
Employees
- managers
- shareholders
What are shareholders concerned with?
- good income
- return of investments
- safe working environment
- ## increased value of shares
What are external stakeholders interested in?
Regular trade
- fair prices
- value for money
- clear and fair pricing
Give some examples of stakeholders
- suppliers
- consumers
- local community
- government
Explain shareholders vs stakeholders?
- Managing stakeholders expectations is closely linked to social responsibility
- meeting external stakeholders needs encourages ethical working from a business
- meeting expectations can also be expensive
What conflicting occurs with stakeholders and shareholders?
To meet external and internal needs leads to overlapping ideals and goals and a business will often have to compromise.
What are some internal factors on relationships between stakeholders and shareholders?
- objectives
- management leadership
- Size ownership
What are some external factors of corporate influence
- Market conditions
- stakeholder power
- government policy
What are the three different interest concepts
Shareholders concepts
- stakeholder concept
- alighted objective
Define shareholders concept
Shareholder concept is the belief that a prime function of a business is to serve the shareholders first.
What is stakeholders concept?
A business must cater to needs of a stakeholder first.
Define Alighted objectives ?
A business approach which focuses on shareholder value with a long term perspective.
