Stakeholders (economic agents) and there objectives

Question 1

What is a creditor ?

Answer 1

an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract

Question 2

What are the stakeholder groups ?

Answer 2

shareholder
customer
employee
government
suppliers
creditors
the local community

Question 3

What do shareholders want ?

Answer 3

ROI
high dividends

Question 4

What do customers want ?

Answer 4

good quality products
fair price
good customer service

Question 5

What do employees want ?

Answer 5

fair pay
good working conditions

Question 6

What does the government want ?

Answer 6

taxes paid
employment law followed

Question 7

What do suppliers want ?

Answer 7

regular business
customer loyalty

Question 8

What do creditors want ?

Answer 8

repayment
regular business

Question 9

What does the local community want ?

Answer 9

environmentally friendly
CSR
maybe bring tourism

Question 10

What is CSR ?

Answer 10

firms now focusing on wider community not just shareholders

Question 11

What are the internal influences when dealing with stakeholders ?

Answer 11

leadership style
objectives
size of business

Question 12

What are the external influences when dealing with stakeholders ?

Answer 12

market conditions
stakeholder power
government politics

Question 13

What is the stakeholder mapping model ?

Answer 13

high interest high power = key players
high interest low power = keep informed
low interest low power = minimal effort
low interest high power = keep satisfied

Question 14

What are economic agents ?

Answer 14

economic decision makers who know that different factors influence and motivate different economic groups

Question 15

What are the 3 economic agents ?

Answer 15

consumers
government
firms

Question 16

What are consumers ?

Answer 16

consumers of the products/services generally by financial purposes :high street/online

Question 17

What is the government ?

Answer 17

providers of the law on how consumers and firms should interact with each other

Question 18

What will it mean for an economy to have higher levels of income ?

Answer 18

better service sectors

Question 19

What are firms ?

Answer 19

those who transform factors of production into goods/services that can be sold

Question 20

What are the 3 sectors ?

Answer 20

public (govt controlled)
private (self controlled)
voluntary

Question 21

What is the principal agent problem (agent = manager principal = shareholder) ?

Answer 21

asymmetric information when agents are more likely to act in their own interest e.g shareholders and managers with dividends vs bonus

Question 22

What are the two value judgments ?

Answer 22

positive and normative statements

Question 23

What is a positive statement ?

Answer 23

a statement that describes a fact/phenomenon or relationship in the world based on evidence and can be tested - objective

Question 24

What is a normative statement ?

Answer 24

a statement that involves value judgements about what should be, not based on facts and cannot be tested - subjective