Stakeholders

Question 1

Define a stakeholder

Answer 1

An individual or organisation that is affected by a business’s actions, objectives or policies

Question 2

List the stakeholders of a Business (11)

Answer 2

Entrepreneur
Investor
Manager
Employer
Employee
Consumer
Local community
Government
Supplier
Service provider
Producer

Question 3

Entrepreneur

Answer 3

An individual who identifies a gap in the market and comes up with an idea for a business to fill or satisfy that gap

Question 4

Investor

Answer 4

An individual or organisation that provides the entrepreneur with capital needed to establish/ manage a business

Question 5

Manager

Answer 5

Responsible for the day to day operations of a business and ensures it meets its goals

Question 6

Employer

Answer 6

Hires staff in order to carry out a business’s operations. Responsible for providing safe working conditions for employees and paying their wage/salary

Question 7

Employee

Answer 7

Qualified and skilled individuals hired by an employer to carry out a business’s daily operations in exchange for a salary/wage

Question 8

Consumer

Answer 8

People who buy goods or services for personal use

Question 9

Local community

Answer 9

The individuals, households and organisations located close to a business

Question 10

Government

Answer 10

The body of people that govern a country and imposes taxes on businesses

Question 11

Service provider

Answer 11

Provides a service to a business to operate successfully

Question 12

Supplier

Answer 12

Provides a company with raw materials

Question 13

Producer

Answer 13

Turns raw materials into finished products through the manufacturing process

Question 14

Interest Group

Answer 14

Any group representing stakeholders who share a common goal or interest through collective bargaining.
Aiming to influence policy makers on decisions affecting their members

Question 15

Lobbying

Answer 15

Pressuring a stakeholder into making a decision through petitions, protests or letters

Question 16

Boycotting

Answer 16

Form of protest by refusing to buy/sell/ interact with a business who act in an unethical manner

Question 17

Information campaign

Answer 17

An organised effort to inform people with the goal of influencing their opinions/actions

Question 18

Types of relationships in a business (4)

Answer 18

Co-operative
Competitive
Dependant
Dynamic

Question 19

Co-operative Relationship

Answer 19

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

Question 20

Competitive Relationship

Answer 20

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

Question 21

Dependant Relationship

Answer 21

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

Question 22

Dynamic Relationship

Answer 22

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

Question 23

Trade Union

ICTU

Answer 23

• 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

Question 24

Trade Association

IFA

Answer 24

• 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