stakeholders in a business

Question 1

What are stakeholders

Answer 1

People or groups of people who can be affected by – and therefore have an interest in – any action by an organisation

Question 2

stakeholder concept:

Answer 2

Stakeholder Concept: the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.

Question 3

Who are the stakeholders

Answer 3

Customers

• Suppliers
• Employees
• Local communities
• Government and government agencies
• Special interest groups (pressure groups)
• Lenders

Question 4

stakeholders and their objectives: customers

Answer 4

Good prices, good quality, good company image

Question 5

stakeholders and their objectives: employees

Answer 5

good working conditions, pay, job security, good corporate image

Question 6

stakeholders and their objectives: local community

Answer 6

good employer, non-polluting, social responsiblity

Question 7

stakeholders and their objectives: management

Answer 7

Power, prospects, pay and perks, good corporate image

Question 8

stakeholders and their objectives: shareholders

Answer 8

good return on investment, healthy share price and dividend rate, good corporate image, max short-term profits, long-term growth

Question 9

stakeholders and their objectives: guberment

Answer 9

Pays taxes, meets legislative requirements, provides employment

Question 10

stakeholders and their objectives: suppliers

Answer 10

good prices, stable demand, good corporate image, prompt payers, long-term growth - increased orders.

Question 11

Why are stakeholders important

Answer 11

• They can influence what a business does.

- As they will be affected by the business they will try to get the business to do what they want.

Question 12

CSR

Answer 12

CSR: (Corporate social responsibility) Adopting an objective of CSR means considering the impact of a business’s decisions and activities on its stakeholders

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