Stakeholders

Question 1

What are stakeholders?

Answer 1

An individual or group of people who have an interest in the success of the business

Question 2

Owners:

Answer 2

Profits- invest more money

Question 3

Shareholders:

Answer 3

Dividends/improved share value- sell shares vote at AGM

Question 4

Managers:

Answer 4

Bonuses/pay rise- make decisions/ hire or fire people

Question 5

Employees:

Answer 5

Job satisfaction/ pay rise- standard of work/ industrial action

Question 6

Local government:
Central government:

Answer 6

Employ local workers- deny planning permission
Taxes/laws/jobs- change tax rates/ legislation or bans

Question 7

Banks:

Answer 7

Pay loan on time- change interest rates/ allow loans

Question 8

Customers:

Answer 8

Quality product/ value for money/ good range- take custom elsewhere

Question 9

Supplier:

Answer 9

Repeat business/ pay invoice on time- change prices/ offer discounts/ change lead time

Question 10

Local community:

Answer 10

Environmentally friendly/ provide jobs/ offer goods- organise protests

Question 11

Pressure groups:

Answer 11

Want businesses to promote CSR- start campaigns

Question 12

Board of Governors:

Answer 12

Want management to succeed- make decisions

Question 13

What are conflicts of interest?

Answer 13

When two stakeholders can’t both get what they want at the same time

Question 14

Conflict of interest examples:

Answer 14

Employees- high salary, bonuses, holidays
Owner- Low wages, high productivity, high prices
Customer- High quality, value for money
Local community- Jobs, environmentally friendly
Supplier- Payment onetime, repeat purchases

Question 15

What is interdependence?

Answer 15

When stakeholders need to work together for then business to succeed

Question 16

Interdependence examples:

Answer 16

Owners- High quality, on time purchases, good decisions
Supplier- Regular orders, payment on time
Government- Tax, create jobs, pay on time
Customers- Quality products, low prices, value for money