Stakeholders Flashcards
Who are stakeholders in a businesss
Anyone who has an interest in its activities
Why can there be conflict between stakeholders
They don’t always want the same thing
Identify stakeholders and conflicts
1 shareholders - owners of a Ltd company, goal to increase income, can have conflict between them as some want long term gain and want to reinvest otherwise want dividends paid out
2 directors and managers - in large organisations and focus on long term objectives - some middle managers accused of attempting to maximise salaries whilst cost shutting through redundancy
3 employees are the middle managers down, they receive a wage and sometimes fringe benefits eg pensio, their priority is job security, businesses using more technology and reducing workforce creates conflict
4 customers their satisfaction results in profit which statists other stakeholders customer want efficient service an quality goods at competitive price they are soemtimes in conflict with good business practice
5 suppliers who depend on the success of a business for their sales and businesses depend on them. Suppliers want a fair price for their product and business wants to minimize cost. Power of the market is with the buyer
5 government benefits from a businesses success as it increases tax revenue, higher employment which lowers benefit payments. But they increase pollution, traffic and loss of green space. The increase in environmental awareness forces governments to impose taxes which increase business costs and unemployment
6 local communities receive benefits from local business activity - employment, regional wealth, improved infrastructure. Economic prosperity of an area may depend on a large employer which supports other businesses like shops and hairdressers conflicts can occur over pollution, congestion loss of open space.
