shareholders vs stakeholders 2

Question 1

list the main things shareholders want for the business

Answer 1

• Businesses should maximise returns for investors
• focus on profit
• they are able to vote on how the business is run

Question 2

advantages of listening to shareholders

Answer 2

• there is more pressure to increase revenues/profit

Question 3

disadvantages of listening to shareholders

Answer 3

• ignores other aspects that give a competitive advantage in the long run
  e.g research/innovation, short term focus, not sustainable, ignores other stakeholders

Question 4

list the main things stakeholders want for the business

Answer 4

• longer-term focus
• sustainable growth more than profit
• security of the business

Question 5

advantages of listening to stakeholders

Answer 5

• creates motivation for staff
• stronger brand image as more time is put into it
• long term development

Question 6

disadvantages of listening to stakeholders

Answer 6

• slower growth and decision making
• the risk of losing investors