→characteristics of stakeholders of businesses including their interests, potential conflicts between stakeholders, and corporate Social responsibility considerations

Question 1

what is a stake holder?

Answer 1

stakeholders groups and individuals who interact with the business and have a vested interest in its activities
usually, most stakeholders are found within the internal business

Question 2

what is an internal stakeholder?

Answer 2

internal stakeholders include owners, shareholders, directors, management and employees

Question 3

define an owner (internal)

Answer 3

The individuals or entities that own the business and have the right to benefit from the profit that it makes

Question 4

what is an external stakeholder?

Answer 4

external stakeholders are found in the external environment meaning outside the business and beyond its full control. including government, competitors, interest groups, customers, suppliers and members of the community

Question 5

what is the owners intrest?

Answer 5

Want the business to make a profit — they depend on the success of the business for their income or wealth

Question 6

define shareholder? (internal)

Answer 6

The individuals or entities that purchase shares in a company, so that makes them partial owners of the business

Question 7

what is the interest of the shareholder?

Answer 7

Want the business that they have invested in to be profitable

Question 8

define directors (internal)

Answer 8

The people who have overall responsibility for managing the company’s business activities

Question 9

what is a directors interest?

Answer 9

Have responsibility for developing and overseeing the strategic direction of the company

Question 10

define management (internal)

Answer 10

The people who have the responsibility for running a profitable or successful business

Question 11

what are the interests of the management

Answer 11

Want the business to perform financially and, in return, expect to be fairly remunerated

Question 12

define employee (internal)

Answer 12

The people working for the business

Question 13

what are the interests of the employees?

Answer 13

Expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to the production

Question 14

define goverment (external)

Answer 14

The group of elected people with the authority to govern `a community (exists at three levels meaning federal, state and local)

Question 15

what is the interest of a government

Answer 15

Make or change laws that have an impact on businesses and Wants the business to do well because this is good for the economy.

Question 16

define competitors (external)

Answer 16

Other businesses that produce and sell rival, or competing, goods or services to those of the business

Question 17

what are the interests of competitors

Answer 17

Want to have a competitive edge over the business.

Question 18

define interests groups (external)

Answer 18

Organisations that attempt to directly influence or persuade a business to adopt particular policies, activities, processes or procedures

Question 19

what is the interest of interest groups

Answer 19

Specific interest groups want the business to consider their area of interest, whether it is in the area of unemployment, civil liberties, anti-globalisation or environmental protection.

Question 20

define customers

Answer 20

The people who purchase or use the products of the business

Question 21

what are customers interests

Answer 21

Expect to purchase quality products at reasonable prices and receive high levels of service.

Question 22

define suppliers

Answer 22

The businesses or individuals who supply resources and materials to the business, allowing it to conduct its operations

Question 23

define members of the community

Answer 23

The individuals who live in the same area such as a city or town as other groups of individuals

Question 24

what are members of the community interests

Answer 24

Expect that a business will give back to society something of what they take out in generating profit.

Question 25

what is a potential conflict between stakeholders

Answer 25

One potential conflict between the demands of shareholders and employees is that stakeholders have higher dividends whereas employees expect safe working conditions and reasonable wages in return for the work they do. They also expect to know that their job is secure in the long term