Stakeholder Mapping Flashcards
What is a Stakeholder?
Any individual or organisation who has a vested interest in the activities and decision making of a business
State seven stakeholders
- Owners / shareholders
- Employees
- Customers
- Government
- Creditors
- Suppliers
- Society
Why may shareholders / owners be interested in a business?
- Return on investments
- High dividends / profits
Why may employees be interested in a business?
- Financial incentives
- Job security
- Working conditions
- Promotion opportunities
- Job satisfaction / motivation
Why may customers be interested in a business?
- Value for money
- Product quality
- Customer service
Why may suppliers be interested in a business?
- Financial stability of the firm: can the business pay it’s bills?
- Continued and profitable trade with the business
Why may creditors be interested in a business?
- Can the business repay loans?
Why may governments be interested in a business?
- The correct collection and payment of taxes
- Job opportunities
- Compliance with business legislation
Why may society be interested in a business?
- Success of the business (job creations)
- Compliance with local laws and regulations (noise, pollution)
What does a high level of stakeholder power and a high level of stakeholder interest mean?
The business need to take notice of them and should engage with them directly
What does a high level of stakeholder power and a low level of stakeholder interest mean?
The business need to keep them satisfied
What does a low level of stakeholder power and a high level of stakeholder interest mean?
The business should regularly communicate with them
What does a low level of stakeholder power and a low level of stakeholder interest mean?
The business should only communicate when necessary
