Business Stakeholders

Question 1

What is a business Stakeholder?

Answer 1

A stakeholder is an individual or group with a direct interest in the operations
and performance of a business.

Question 2

Stakeholders can be classified into two
groups:

Answer 2

1. Internal stakeholders
   These are individuals within an organisation
   who have a special interest in its activities
   and how well the business performs.
2. External stakeholders
   These are individuals who are not employed
   by or members of the business, but rather
   they have a vested interest in its activities
   and its financial performance.

Question 3

Internal Stakeholders

Answer 3

Owners/Shareholders
Employees
Managers
Board of directors

Question 4

Role and Function of Owner/Shareholder:

Answer 4

Owner/Shareholder:

1.To provide capital in order to allow the
business to survive and possibly expand.
2. Ensure that managers are fulfilling the
objectives of the business and are using
resources efficiently.
3. Expected to attend general meetings to
receive annual reports and elect directors.

Question 5

Board of Directors

Answer 5

• To develop strategies to make most profit for the company
• To make decisions and how to invest profit for the company
• To ensure that the activities of the
  business meet
  government regulations.

Question 6

Managers

Answer 6

• To maximise profit or make maximum
  returns on investments made by the
  owners into the business.
• Ensure that the goals of the owner and
  the Board of Directors (BOD) are
  achieved in growing the business.
• Ensure that employees are productive
  and are also treated fairly.

Question 7

Employee

Answer 7

Provide manual and labor services for the business to deliver goods and services to customers.

Meet conditions and requirements outlined in the employment contract.
Cooperate with management on reasonable requests.

Examples:
**Accounts clerk: **Supports the accountant by verifying, organizing, processing, and storing financial records.
Compliance officer: Ensures the business operates according to accepted standards, implementing compliance policies for professional and business standards.

Question 8

Suppliers:

Answer 8

To supply goods and services ordered by
the business in the time and condition as
laid down by the purchase contract or
suppliers’ service agreements.

Question 9

Consumers :

Answer 9

• To purchase goods and
  services, provide revenue
  from sales which allows the
  business to function and
  expand.
• To provide feedback to the
  business on the
  performance of products.
• Customers are expected to
  be honest and not make
  false claims about poor
  service or faulty goods.
• To report unethical
  practices of the business to
  the relevant authorities.

Question 10

Lending institutions:

Answer 10

• To provide financial assistance to
  businesses in the form of loans or
  financial advice.
• To ensure that businesses can
  repay loans.

Question 11

Community:

Answer 11

To ensure that the business within the
community operates within the law and
contributes towards the development of the
community.
To cooperate with the business, where
reasonable to do so on expansion and other
plans.
To meet reasonable requests from businesses
for local services such as public transport (e.g
to allow staff to get to work) and waste
disposal.

Question 12

Competitors:

Answer 12

• To stimulate competition for sales
  and market share.