3.4.3 shareholders versus stakeholders

Question 1

define stakeholder

Answer 1

anyone who has an interest in the business, or who may be affected by the activities of the business

Question 2

internal stakeholders

Answer 2

groups or individuals within an organisation who have an interest in the business

Question 3

external stakeholders

Answer 3

groups or individuals outside of an organisation who have an interest in the business

Question 4

stakeholder objectives

Answer 4

stakeholder groups all have an interest in the business.
their objectives can often conflict with the objectives of other stakeholders, shareholders or business owner

Question 5

drawing a stakeholder map

Answer 5

1. identify stakeholders
2. rank the stakeholders expertise: low, medium or high
3. rank the stakeholders willingness to engage with the business: low, medium, high
4. rank the stakeholders value to the business: low, medium, high

Question 6

influences of shareholders

Answer 6

shareholders are the investors.
the whole company can struggle if every shareholder tries to sell up.
share price will plummet.
often pushes for short-termism rather than long-termism

Question 6

influences of stakeholders

Answer 6

some companies try to make a conscious effort to meet the needs of all stakeholders