Stakeholders Flashcards
What is a stakeholder in business?
A stakeholder is any individual or group that has an interest in the success of a business and can affect or be affected by its operations.
True or False: Only shareholders are considered stakeholders.
False
List three types of stakeholders.
Employees, customers, suppliers, owners, government, bank/financial provider, local community
What is the primary interest of shareholders?
Maximizing their return on investment.
Fill in the blank: __________ are stakeholders who provide capital to the business.
Investors
What role do customers play as stakeholders?
Customers influence business decisions through their purchasing choices and demand for products or services.
How do suppliers affect a business’s operations?
Suppliers provide the necessary materials and services needed for production, influencing cost and quality.
What is stakeholder theory?
Stakeholder theory suggests that a business should consider the interests of all its stakeholders, not just shareholders.
True or False: The interests of different stakeholders are always aligned.
False
What is the role of government as a stakeholder?
The government regulates business activities and can influence company operations through legislation and taxation.
Fill in the blank: __________ stakeholders are those who are directly affected by the business’s actions.
Primary
What is a common conflict between stakeholders?
Conflicts often arise between shareholders wanting higher profits and employees seeking better wages.
Multiple choice: Which of the following can be considered a secondary stakeholder? A) Customers B) Employees C) Local community D) Creditors
C) Local community
Define ‘stakeholder engagement.’
Stakeholder engagement is the process of involving stakeholders in decision-making and understanding their needs and expectations.
What is an internal stakeholder?
Anyone inside the business that is affected by their decisions e.g. Owners, employees
