3.4.3 Shareholders vs Stakeholders (2/3) Flashcards
Stakeholder Objectives
A result that stakeholders hope to achieve
Each group of stakeholders are likely to have what?
Likely to have their own specific objectives that can ultimately lead to conflict amongst each stakeholders.
Shareholders objectives
would want a business to maximise shareholder value.
.If shareholders not satisisfeid with the growth of shareholder value then they may sell their shares.
This can result in a fall in share price which might make the company vulnerable to a takeover.
Shareholder value
Share price
Shareholder value- The value enjoyed by a shareholder by possessing shares of a company.It is the value delivered by the company to the shareholders.
Share price- price of a single share of a company
Employee objectives
They want the business to grow + prosper,
If business is growing = higher wages, more perks + bonuses.They get to maximise financial rewards + welfare
Managerial objectives
Similar to employees.
Want business to grow + prosper so they can maximise financial profits + perks
Customer objectives
They want :
- Good quality + safe products
- Highly quality customer service
- A range of choice of products.
Supplier objectives
They want to be treated fairly by the business.
-Would prefer to have long term contracts + regular orders
Government objectives
Want businesses to grow + Make profit so economy can grow.
-Also want businesses to comply with legislations + not exploit vulnerable groups.
Environmental objectives
Will want business to avoid having any negative impact on the environment.
Local community objectives.
Will want businesses to contribute to the prosperity of the community and be good corporate citizens.
E.g create more jobs for locals, build links with schools + charities, minimise congestion + pollution in area
