Shareholders vs Stakeholders 3.4.3 Flashcards
1
Q
What is a stakeholder?
A
Anyone who is affected by the actions of a business. A business needs to take into account the needs and interests of its stakeholders to operate successfully.
2
Q
What are shareholders?
A
Those who own a share of the company
3
Q
Employee objectives
A
- decent wage
- pleasant working conditions
- job security
4
Q
Owner/shareholder objectives
A
- make profit/ share of profit
- high share price
5
Q
Customer objectives
A
- receive high-quality products
- fair price
- positive customer experience
6
Q
Supplier objectives
A
- business pay what they owe promptly
- fair price
- establish long-term arrangements
7
Q
Local community objectives
A
- maintain or improve the standard of living
- provide jobs
- environmentally responsible
- contributing to local causes
8
Q
Government objectives
A
- comply with law
- create jobs
9
Q
Pressure group objectives
A
- promote a specific cause
10
Q
Stakeholder approach
A
Business considers all of its stakeholders in its business objectives - likely to increase costs
11
Q
Shareholder approach
A
The business should focus purely on shareholder returns in its decisions
