Stakeholders Flashcards
What is the definition of stakeholder
Stakeholders are individuals, groups, or organizations who have a vested interest in the performance and activities of a business.
What is the definition of Owner
Owners are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations
- Internal stakeholders
- Invest in the business to provide its initial capital
What is the definition of Manager
Managers are individuals who oversee and coordinate a business’s employees and lead its
operations to ultimately achieve the business’s objectives
- Internal stakeholders
- Responsible for overseeing work tasks and progressing the business towards achieving its objectives.
What is the definition of Employees
Employees are individuals who are hired by a business to complete work tasks and support the achievement of its objectives.
- Internal stakeholders
- Employees play a crucial role in business performance
- Enable the simultaneous achievement of different business objectives by producing goods and services, engaging with customers, and assisting overall operations.
What is the definition of Customer?
Customers are individuals or groups who interact with a business by purchasing and utilizing its goods and services.
- External stakeholders
- Customer loyalty is important in maintaining a steady income for a business
What is the definition of Suppliers?
Suppliers are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.
- External stakeholders
- Positive relationships between businesses and suppliers are crucial to an efficient and effective production system
- Business rely on supplier materials to produce goods and services
What is the definition of General Community?
The general community is the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the business.
- These people do not necessarily purchase goods and services from the business but observe the outcomes of the business activities on their environment and wellbeing
- Businesses should seek to positively impact the general community
- This results in an increased business reputation and public perception, which could lead to better performance.
Vested interest of Owners
- Receive a return on investment (share price, dividends, profits)
- Fostering positive relations with other stakeholders to enhance business reputation / performance
Vested interest of Managers
- Recognition for the achievements of business objectives
- Opportunities for career advancement and promotion / increasing their status
- Bonuses received from owners for achieving business objectives
- Appropriate wages and working conditions that reflect their managerial role
Vested interest of Employees
- Long-term job security
- Fair pay and working conditions
- Opportunities to advance their careers and receive promotions / engage in personal and professional development
Vested interest of Customers
- Receive high-quality goods and services at affordable prices
- Work with businesses that are ethical and sustainable
- Experience with friendly and helpful customer service and assistance
Vested interest of Suppliers
- Increasing their revenue
- Earning a profit from the raw materials and resources they supply
- Reliable and honest relationships with businesses they supply
Vested interest of General Community
- Observing business activities that lead to improvements in the community and environment
- Increasing the local employment rate and boosting the local economy
