stakeholders

Question 1

define stakeholders

Answer 1

stakeholders are groups and individuals who have a vested interest in the business and are affected by its activities. all businesses have stakeholders both inside and outside the business who interact with the business and have some form of interest in the decisions made by managers.

Question 2

list the key stakeholders

Answer 2

managers, lenders, employees, competitors, suppliers, customers, trade unions, community.

Question 3

describe two conflicting interests 1

Answer 3

employees require safe working conditions and reasonable wages, but this will reduce the business’s profit and dividends to shareholders.

Question 4

describe two conflicting interests 2

Answer 4

management wishes to keep costs down to improve profit but suppliers providing ethical materials require higher prices to cover their costs.