stakeholders Flashcards
Stakeholder : definition
Any individual or group who is interested in and is affected by a business eg employer, employee.
Internal Stakeholder : definition
Those people who are inside the business and have a direct interest in its survival and well being.
External stakeholder : definition
The groups/people outside the business who have an interest in its activities.
Owners : key interests
Want best possible return on money they’ve invested, want to see business grow so returns increase, they want capital gain and may not want to maximise profit .
Employees : key interests
Want highest wage and bonus if possible and job security,want business to offer more than the legal entitlement to holidays, sick pay etc., want good working conditions, want promotional opportunities.
Customers : key interests
Want best quality products at lowest possible price, want product innovation, want good customer services, want payment options, want trade credit, want socially responsible business.
Suppliers : key interests
Want to see its customers prosper so it has regular profit, wants customers to grow larger so it can increase its own sales, want to be paid as promptly as possible, want a long term relationship.
Lenders : key interests
Want to be paid on time with agreed amount, want security of debt, want excellent credit rating, want stability of business.
Community : key interests
Want jobs from business, want business to sponsor local sport teams etc, want local authority to improve roads etc a result of more business in area, don’t want local pollution and congestion as well as noise pollution, want property prices to fall.
Government : key interest
Wants more people employed as a result of a business’ activities, want to pay out less social security benefits and receive increased tax revenue from business and its employees. , want to improve uk’s trading position with other countries.
Creditors : key interests
Want profitability and liquidity ( ie stability of business) , want firms ability to repay debt regularly, promptly and with interest
Eg : suppliers who give trade credit.
Pressure groups : key interest
Are concerned with aspect of business activities that directly impact their cause, want financially stable firm, want collaboration with management to seek resolution to problems
Eg: environment, consumer group, trade unions, animal welfare groups
Stakeholder : definition
Any individual or group who is interested in and is affected by the business eg employer,employee or supplier
Internal Stakeholder : definition
those people who are inside the business and have a direct interest in its survival and well being .
External Stakeholders : definition
the groups/people outside the firm who have and interest in its activities.