N5S3 - Stakeholders Flashcards
What is a stakeholder?
A stakeholder is any person, group of people or other organisation that has an interest in the activities of a business.
List all of the types of stakeholders
- owners
- managers
- shareholders
- employees
- banks
- customers
- suppliers
- local community
- pressure groups
- local government
- national government
Interest and Influence?:
Owners/Shareholders
Interest in the business succeeding is:
- make a profit
- receive high dividends
Influence on the business is :
- making all the big decisions
- investing or withdrawing equity into the business
- changing management
Interest and Influence?:
Managers
Interest in the business succeeding is:
- getting promoted
- winning bonuses
- having job security
Influence on the business is:
- hiring and firing
- creating company policies
- making day-to-day decisions and long term decisions
Interest and Influence?:
Employees
Interest in the business in the business succeeding is:
- job security
- higher pay
- improved working conditions
Influence on the business is:
- increasing/decreasing productivity
- providing good/bad customer service
- in extreme cases, withdrawing their labour and going on strike
Interest and Influence?:
Customers
Interest in the business succeeding is :
- quality products and services
- low prices
- value for money
Influence on the business is:
- deciding whether or not to purchase the product or use the service
- affecting an organisation’s reputation by word of mouth, reviews and social media
Interest and Influence?:
Banks
Interest in the business succeedingis:
- the organisation can pay their loans in full and on time
Influence on the business is:
- permitting or denying loan requests
- changing interest rates on loans offered
- changing repayment lengths
Interest and Influence?:
Government
Interest in the business succeeding is:
- wanting businesses to pay corporation tax
- creating jobs and wealth for the population
- providing goods and services for the population
Influence on the business is:
- raising or lowering corporation tax
Interest and Influence?:
Suppliers
Interest in the business succeeding is:
- regular orders from their customers (the other businesses)
- prompt payment
Influence on the business is:
- raising or lowering prices of goods
- changing credit terms
- changing delivery times
- increasing or decreasing the quality of their goods/materials
Interest and Influence:
Local Community
Interest in the business succeeding is:
- firms to bring jobs to the area
- good, safe environment to live in
- good transport and communication links
Influence on the business is:
- protesting and petitioning if unhappy at an organisation’s conduct
- Boycotting the organisation
