• characteristics of stakeholders of businesses including their interests, potential conflicts between stakeholders, and corporate social responsibility considerations

Question 1

Define stakeholder

Answer 1

A group or individual that has vested interest in the operations of the business

Question 2

Outline Directors (or partners) role and vested interest

Answer 2

People who direct strategic direction of business and ensure it is following ethics and corporate governance

Vested interest in personal power/status, remuneration, business success

Question 3

Outline employees role and vested interest

Answer 3

People who are employed by the business to provide labour in return for wages

Vested interest in good working conditions, job security , career advancement, job satisfaction, safe work ect.

paid fairly, trained properly and treated

ethically in return for their contribution to production

Question 4

Outline Managers role and vested interest

Answer 4

People employed by the business to make decisions and enable the business to achieve its objectives

Vested interest in career advancement, high salary, job security and growth

Question 5

Outline shareholders role and vested interest

Answer 5

(or members) the owners of a company who invest finance into the business in return for part ownership

Vested interest in return on investment, healthy dividends and business abiding by CSR (green investors)

Question 6

Outline the role of competitors and the vested interest

Answer 6

Other businesses or individuals who offer rival, or competing, goods or services to the ones offered by the business

Vested interest to gain the upper hand and the competitive edge, gaining more sales and profit amongst other competing businesses.

Question 7

Outline the role of customers and their vested interest

Answer 7

The people who purchase goods and services from the business, expecting high quality at competitive prices

Vested interest in high quality products/services at a competitive price, business demonstrating CSR

Question 8

Outline the role of suppliers and their vested interests

Answer 8

Businesses or individuals who supply materials and other resources to a business so that it can conduct its operations

Vested interest in loyalty, long-term contracts and to be paid on time

Question 9

Outline the role of the community and their vested interest

Answer 9

• Expect that a business will give back to society something of what they take out in generating
  profit
• Expect businesses to show concern for their future welfare through their own employment within
  businesses
• Expect the business to show concern for the environment
• For examples such as charities, like “R U OK?”

Question 10

Outline the role of the and their interested government

Answer 10

• Make or change laws that have an impact on businesses
• Want the business to do well because this is good for the economy — the government also benefits from successful business by receiving a portion of their profits through its collection of taxation revenue

Question 11

List internal stakeholders

Answer 11

Owners

Shareholders

Directors

Management

Employees

Question 12

List external stakeholders

Answer 12

Government

Competitors

Interest Groups

Customers

General community

Question 13

Corporate Culture can be both….

Answer 13

Official CC: the formal and written expression of values, beliefs, ect. Official CC represents what this business says it stands for evident in its policies, vision and mission statement, website etc.

Real CC: is the actual presiding culture of the business- it is unwritten and informal. Real CC represents the actual culture of the business evident, language, relations between staff ect.

Question 14

Explain the conflicting interest between Employees and Shareholders

Answer 14

Employee require safe working conditions and reasonable wages, but this will reduce the business’s profit and dividends to shareholders.

Question 15

Explain the conflicting interest of Managers and Suppliers

Answer 15

Management wishes to keep costs down to improve profit but suppliers providing ethical materials require higher prices to cover their costs.

Question 16

Explain the conflicting interest of Managers and Suppliers

Answer 16

Management could attempt to maintain profit and a high dividend to satisfy shareholders by raising the prices of products, but this will upset customers, who expect reasonably priced products.

Question 17

Explain the conflicting interest of Suppliers and members of the community

Answer 17

Suppliers expect to be paid fairly and promptly, but they might reduce costs by using unethical or socially irresponsible practices, which can upset members of the community.

Question 18

Who are interest groups and what is their tested interest

Answer 18

• Organisations who attempt to directly influence or persuade a business to adopt or change particular activates, processes or policies. “Three common types are trade unions, consumer groups and specific issue groups
• The expect to gain the interest of the business and the approval to adopt their push for changes they aim to have developed.