Stakeholder objectives A2 1 Flashcards
what is a stakeholder objective
This is a goal of a particular stakeholder group eg; staff might have the goal of security of employment
what are stakeholders
these are groups and individuals that may be affected by or have an effect on the activities and decision-making of a business
what are the key stakeholder groups
- owners
-staff
-competitors
-suppliers
-creditors
-pressure groups
-local communities
-government
what are pressure groups
a pressure group is an organisation that tries to influence government policy or business activity in the interest of a particular cause
what are owners objectives
- They have an objective to secure growth for the business,
- earn profit
- earn a return on the funds invested in their business
- build an excellent reputation and corporate image
wht are staff objectives
- they have an objective of security of employment,
- increased wages/benefits and ability of business to meet corporate social responsibilities.
- while they effect reliability and quality.
- younger staff wont care about benefits such as healthcare.
what are customer objectives
- excellent business reputation,
- excellent quality of products/services with the business having an ability to meet corporate social responsibilities.
- they have an effect on reviews
what are suppliers objectives
- financial stability of business and security of future workload. they have an effect on quality, quantity.
what are creditors objectives (anyone the business owes money to eg bank and creditors)
- financial stability of the business,
- security of the debt,
- receipt of payment in a timely matter.
what are lenders objectives
- financial stability of the business,
- low financial risk,
- security of debt and repay in a timely fashion
what are pressure group objectives
- concerned with aspects of business activity that directly impact their cause eg; environmental,
- financial stability of the business,
- collaboration with management to seek resolution to problems
what are local communities objectives
- growth prospects of the business,
- financial stability of the business
what are government objectives
- general prosperity of business
- benefits local community
- comply with legislation (working conditions, minimum wage.
why does conflict arise between stakeholders
conflict arises when two or more stakeholders differ regarding the outcome of a specific business objective or the approach taken to achieve the outcome
why would management conflict with employees
- Lack of training due to automation
- Demotivated due to non-financial benefits
- Lack of benefits to cut on expenses eg; parking
what is a stakeholder approach
this is where managers take account of stakeholders needs as part of the decision making process as a way or successfully achieving business objectives. eg: win win
how could possible conflict be dealt 1.
- Stakeholder approach
- direct negotiations (each stakeholder at risk of conflict can be collectively bargained)
- Direct action from business managers to remove conflict between groups
- Collab with opposing groups
- Legislative action eg; working conditions. Arbitration (legally bind)
how could possible conflict be dealt 2.
- communication to remove “rumour mill”
- Participation
- Ignore
what is an internal stakeholder
a group that is closely connected to the business and their needs are likely to have a strong influence on how the business is ran
what is an external stakeholder
a group that have a contractual relationship with a business sometimes known as contractual stakeholders
what is a shareholder approach
its the primary responsibility of businesses to act in the interest of its owners (shareholders)
evaluation
the effectiveness of a conflict strategy will depend on the power/influence of a stakeholder
