Shareholders and decision making Flashcards
What is a stakeholder?
Anyone who is affected by or has an interest in a business.
What are examples of internal stakeholders and their interests?
Owners who want to make a profit
Employees who want job security
Managers who want bonuses or rewards for good performance
What are examples of external stakeholders and their interests?
Customers who want high quality products
Government who want businesses to pay taxes
Local community who wants businesses to provide jobs
What is a stakeholder map?
A tool used by businesses to identify the power and interest of different stakeholders.
What are the 4 categories in stakeholder mapping?
High power, high interest (manage closely)
High power, low interest (keep satisfied)
Low power, high interest (keep informed)
Low power, low interest (monitor)
Who has high power, high interest?
Major investors.
Who has high power, low interest?
Government.
Who has low power, high interest?
Employees.
Who has low power, low interest?
General public.
What are 2 ways businesses can manage their relationships with stakeholders?
Communication
Consultation
What is communication?
The transfer of information between people.
What is consultation?
When a business asks stakeholders for their opinions before making a decision.
What are benefits of communication and consultation?
Better decision-making
Reduced conflict
Higher stakeholder satisfaction
