Stakeholders Flashcards
Define a stakeholder
An individual or organisation that is affected by a business’s actions, objectives or policies
List the stakeholders of a Business (11)
Entrepreneur
Investor
Manager
Employer
Employee
Consumer
Local community
Government
Supplier
Service provider
Producer
Entrepreneur
An individual who identifies a gap in the market and comes up with an idea for a business to fill or satisfy that gap
Investor
An individual or organisation that provides the entrepreneur with capital needed to establish/ manage a business
Manager
Responsible for the day to day operations of a business and ensures it meets its goals
Employer
Hires staff in order to carry out a business’s operations. Responsible for providing safe working conditions for employees and paying their wage/salary
Employee
Qualified and skilled individuals hired by an employer to carry out a business’s daily operations in exchange for a salary/wage
Consumer
People who buy goods or services for personal use
Local community
The individuals, households and organisations located close to a business
Government
The body of people that govern a country and imposes taxes on businesses
Service provider
Provides a service to a business to operate successfully
Supplier
Provides a company with raw materials
Producer
Turns raw materials into finished products through the manufacturing process
Interest Group
Any group representing stakeholders who share a common goal or interest through collective bargaining.
Aiming to influence policy makers on decisions affecting their members
Lobbying
Pressuring a stakeholder into making a decision through petitions, protests or letters
Boycotting
Form of protest by refusing to buy/sell/ interact with a business who act in an unethical manner
Information campaign
An organised effort to inform people with the goal of influencing their opinions/actions
Types of relationships in a business (4)
Co-operative
Competitive
Dependant
Dynamic
Co-operative Relationship
Both parties are working towards a shared goal.
(Entrepreneur + Investor)
Entrepreneur provides the investor with valuable information about the business and in exchange the investor provides the entrepreneur with the capital needed to run their business successfully in exchange for a reasonable share
Competitive Relationship
A win lose relationship that involves rival parties that both wish to be successful but only one can be the winner
(Entrepreneur + Investor)
An investor may want an immediate/greater return on their investment. But the entrepreneur may want to keep funds to expand the business which is a greater risk on the investor
Dependant Relationship
Two or more parties that cannot prosper on their own. The success of one party depends on the actions of the other party. It one fails, so does the other.
(Entrepreneur + Government)
The government needs entrepreneurs to set up businesses and provide employment. An entrepreneur depends on the government for grants to establish/expand
Dynamic Relationship
Relationships that are likely to change over time
(Producer + Consumer)
If goods arrive on time and in good condition, then the relationship remains positive. Yet this can change, if goods arrive late and in poor conditions
Trade Union
ICTU
- organisation that protects the rights + interests of the workers it represents
- particularily on issues such as pay and working conditions
Ex. ICTU (Irish Congress of Trade Unions)
1. promotes trade unionism through campaigns and policies
2. represents and advances the economic and social interests of working people
3. assists with resolving conflicts and disputes between workers it represents and their employers
Trade Association
IFA
- represents the interests of businesses in a specific industry
- may hold events, provide training, or speak on behalf of industry as a whole in policy making
Ex. IFA (Irish Farmers Association)
1. actively represents over 900 branches and 90,000 members
2. engage in intense lobbying in Brussels to obtain greater flexibility on milk quotes
3. engages in intense lobbying on national governments to initiate pro farming policies that improve farmer income
