lo5 Flashcards
what is a stakeholder
a person / group of people who are affected by the activities of a business
internal stakeholder
based within a business
external stakeholder
come from outside of the business
example of internal
- owners
- employes
owners objectives
- make enough profit
- achieve business growth
- be competitve
employees objectives
- job security
- good working conditions
- high pay
external stakeholders example
- customers
- shareholders and potential investors
- local residents
- pressure groups
- suppliers
- banks and lenders
- central government
- local government
customers objectives
- low prices
- good choice of products
- high quality products
shareholders and potential investors objectives
- high dividends
- high share prices
- voting rights
local residents objectives
- minimise pollution
- reduce traffic congestion
- more jobs
pressure groups objectives
- stop child labour
- preserve the woodlands and forests
- stop product testing on animals
suppliers objectives
- high prices
- regular orders
- being paid on time
banks and lenders objectives
- high interest rates
- being paid back on time
- business loyalty
central goverment objectives
- health and safety
- collecting taxes
- being environmentally friendly
local goverment objectives
- enviromental health
- beuilding control
- stopping fly tipping
how can employees alter business behaviour
refuse to work over time
how can trade unions alter bsuiness behaviour
call strike
how can customers alter business behaviour
boycott
how can pressure groups alter business behaviour
protest
how can suppliers alter business behaviour
refuse to supply the business
how can local residents alter business behaviour
complain to local press
how can local gov alter business behaviour
withholds planning permission
how can central gov alter business behaviour
fine the business
how can shareholders alter business behaviour
call an extraordinary meeting
5.3
what are the consequences to not responding to stakeholders
- bad publicity
- weaker cash flow position
- loss of customers
- poor reputation
- fewer investors
- loss of profit
- increased staff absence
- financial difficulties
