3.4.3 Stakeholders Flashcards
What are stakeholders
Stakeholders are groups or individuals who have an interest in a business
While shareholders are internal stakeholders of a ltd
What are some examples of internal stakeholders
- employees
- shareholders
- managers
What are some interests of internal stakeholders
- good income
- job security
- safe working conditions
- opportunity for development
- meet targets
- Return on investments
- ethical business practise
What are some external stakeholders
- Suppliers
- customers
- local community
- government agencies
what are some of the interests of external stakeholders
- regular trade - employment
- fair prices - investment
- paid on time - no pollution
- reliable products - fair/ open trade
- good service
what are overlapping issues between shareholders and stakeholders?
stakeholders especially external ones will focus on the ethical side of the business and how it affects people while internal stakeholders are more likely to focus on profits so businesses will have to consider both aspects.
give examples of shareholders and stakeholders conflicts
between
- customers
- directors/ managers
- government
- environment
what are some examples of internal factors which have an influence on stakeholder relationship
- management and leadership
- objectives
- size ownership
what are some external factors that influence a stakeholders relationship
- market conditions
- stakeholders power
- government policy
what is shareholder concept
this is the belief that the prime function of a business is to satisfy its shareholders
- they do this by looking to maximise profitability and shareholder returns
stakeholders concept
this is where the business cater for the needs of all stakeholders, not just shareholders, therefore creating long term prosperity
and avoid unsustainable business practices
what are Aligned objectives
this is when a business focuses on shareholders value with a long term perspective, not just a short term profitability gains
