5 - Stakeholders Flashcards
Understand the relationship between businesses and stakeholders
what are the Internal Stakeholder for limited companies?
Owner/founder, employees
What is an external stakeholder? Give examples.
An external stakeholder is a person or group that is linked with the business from outside the organisation. Examples could be, shareholder, customers, suppliers and pressure groups.
What is an internal stakeholder? Give examples.
An internal stakeholder is any person or group that is involved with the business from within the organisation. Examples could be, Chief Executive, Staff and Owners.
What are the external stakeholders of a limited company?
Customers, suppliers, local residents/community, local+state government, trade unions, shareholders and pressure groups
What is a stakeholder?
It is any individual or group that is affected by the performance of a business.
What are staff ( internal stakeholder) objectives?
Enjoy good working conditions, be fairly paid, have a fulfilling career and help the business succeed for job security.
What are the owners (internal stakeholders) objectives?
Ensure the business makes a profit, remains competitive and have hard working loyal staff.
What are customer (internal stakeholder) objectives?
Receive fair treatment, good value for money products and services that are of acceptable quality.
Support employees to ensure good working conditions
What stakeholders objective is this?
Trade unions
What are suppliers (external stakeholder) objectives?
Receive payment within agreed time period and work with a fair contract.
What are financial businesses ( external stakeholder) objectives?
Give other businesses important financial information and fund or retain financial aspects of a business.
What are local community (external stakeholder) objectives?
Respect from the business, information of any developments in the local area from the business.
1 example of objectives of an employee
For the business to succeed and remain profitable to retain salary and job security
Enjoy good working conditions
Get recognition for hard work (bonus or promotion)
How might pressure groups impact business operations?
The business may start to act more ethically to avoid bad publicity
What are the local and central government (external stakeholder) objectives?
Ensure that business abides by laws, encourage and support economic growth.
