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.
Social media : definition
Social media in a business context refers to the use of websites and applications that enable communication and the sharing of information between stakeholder groups and a business organisation.
Benefits of reaching out to stakeholders via social media
They can encourage stakeholders to subscribe to targeted information, take part in consultations and become involved in the work of them firm. Hence relationships will be developed with some of these social media contacts and collaboration will be possible with the stakeholder becoming more actively involved in the business.
Approach for making social media a part of stakeholder engagement:
Maintain social media presence on social media, search for stakeholder conversations ie use google alerts to flag up conversations when they happen and use social media monitoring sites for the same reasons, target stakeholders by their interests, share relevant content.
Social media interests : business
Uses social media to release info on product/service innovations, increase customer awareness, market research, build up relationship with customers.
Social media and interests : owners
Want business portrayed positively, improve corporate image, increased brand awareness, customer experience, competitive advantage and sales leading to increase profit. (Business to business can improve with LinkedIn)
Social media and interest : staff/employees
Build up customer networks, monitor brand performance, generate sales, respond to customer feedback, enhance reputation.
Social media and interests : suppliers
Promote relationship with key customers through publication of testimonials, may lead to new customers and hence an increased market share.
Social media and interests : lenders/creditors
Communicate with customers regarding price changes, discounts and special offers, not permitted to request payment or send the business a pay,ent reminder on social media.
Social media and interests : customers
Provide positive or negative feedback, if positive it will increase corporate image, if negative it may deter current or future customers.
Social media and interests : government
Uses websites to contact businesses and collect tax payments, electronic transfer of funds (quick and efficient) .
Social media and interests : pressure groups
Use it to publicise business activities that they disagree with, business can respond with press release, online petitions or organise marches.
Social media and interests : local community
Use to promote the corporate social responsibilities a firm may be participating in, increased brand awareness, free pr, psosivitve ocrporate image.
Positive impacts of how businesses and stakeholder groups make effective use of social media :
Provide valuable customer insights (firm can make Maarten business choices), increases sales and market share, oppurtunity of real time response, increase website traffic and search ranking, allows firm to monitor competition and use it to make strategic decisions to stay ahead of competition, increase consumer awareness ie new products, product development (customer reviews), promotion, market research, I handed reputation, cheaper publicity, speed up communication with customers.
Negative impacts of how businesses and stakeholder groups make effective use of social media :
Failure to see it as more than a marketing tool, need dedicated staff to monitor content and send feedback to relevant depths, potential damage to brand if issues aren’t dealt with, some firms restrict themselves to limited use of social media, requires it supports and will increase cost, privacy and security concerns.
