→characteristics of stakeholders of businesses including their interests, potential conflicts between stakeholders, and corporate Social responsibility considerations Flashcards
what is a stake holder?
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
what is an internal stakeholder?
internal stakeholders include owners, shareholders, directors, management and employees
define an owner (internal)
The individuals or entities that own the business and have the right to benefit from the profit that it makes
what is an external stakeholder?
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
what is the owners intrest?
Want the business to make a profit — they depend on the success of the business for their income or wealth
define shareholder? (internal)
The individuals or entities that purchase shares in a company, so that makes them partial owners of the business
what is the interest of the shareholder?
Want the business that they have invested in to be profitable
define directors (internal)
The people who have overall responsibility for managing the company’s business activities
what is a directors interest?
Have responsibility for developing and overseeing the strategic direction of the company
define management (internal)
The people who have the responsibility for running a profitable or successful business
what are the interests of the management
Want the business to perform financially and, in return, expect to be fairly remunerated
define employee (internal)
The people working for the business
what are the interests of the employees?
Expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to the production
define goverment (external)
The group of elected people with the authority to govern `a community (exists at three levels meaning federal, state and local)
what is the interest of a government
Make or change laws that have an impact on businesses and Wants the business to do well because this is good for the economy.
define competitors (external)
Other businesses that produce and sell rival, or competing, goods or services to those of the business
what are the interests of competitors
Want to have a competitive edge over the business.
define interests groups (external)
Organisations that attempt to directly influence or persuade a business to adopt particular policies, activities, processes or procedures
what is the interest of interest groups
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.
define customers
The people who purchase or use the products of the business
what are customers interests
Expect to purchase quality products at reasonable prices and receive high levels of service.
define suppliers
The businesses or individuals who supply resources and materials to the business, allowing it to conduct its operations
define members of the community
The individuals who live in the same area such as a city or town as other groups of individuals
what are members of the community interests
Expect that a business will give back to society something of what they take out in generating profit.
what is a potential conflict between stakeholders
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
