business stakeholders

Question 1

what are stakeholders?

Answer 1

groups or individuals who interact with the business and have a vested interest in its activities.

Question 2

name the 6 business stakeholders

Answer 2

• general community
• customers
• owners
• managers
• employees
• suppliers

Greta COMES to the business

Question 3

what are internal stakeholders?

Answer 3

they have a direct relationship with the business.
managers and employees want to earn high wages and keep their jobs, so they have a vested interest in financial health and success of business.

Question 4

what are external stakeholders?

Answer 4

customers want a wide range of products with reasonable prices
the general community wants the business to provide jobs to generate economic activity in the community, as well as the environment
suppliers want to be paid, they need to provide quality goods

Question 5

what is stakeholder conflicts?

Answer 5

• when one stakeholder group will be better of while one will be worse off

Question 6

list the conflicting interest between: employees and shareholders/owners

Answer 6

• employees want safe working conditions and reasonable wages
• shareholders/owners want to increase sales and minimise expense

Question 7

list the conflicting interest between: management and customers

Answer 7

• management could maintain profits to satisfy shareholders by increasing the prices of products, customers expect reasonable prices

Question 8

list the conflicting interest between: management and the general community

Answer 8

-management can cut costs by neglecting maintenance which could put members of the community in danger

Question 9

list the conflicting interest between: suppliers and the general community

Answer 9

-suppliers want to be paid in full and promptly, they may cut costs by using unethical or socially irresponsible practices, this upsets the community

Question 10

list the conflicting interest between: management and suppliers

Answer 10

• management wants to keep costs down but suppliers providing ethical materials want higher prices to cover their costs

Question 11

What is corporate social responsibility (CSR) ?

Answer 11

• the obligations a business has over and above the legal responsibilities to the well being of its stakeholders as well as the environment

Question 12

what do business’ focus on?

Answer 12

they focus on financial, social and environmental perfomance (triple bottom line)

Question 13

how do business’ benefit through CSR?

Answer 13

• increase sales
• attraction and retention of quality staff
• reduced costs