Stakeholders/Shareholders and Their Interests Flashcards
What is a shareholder?
a person or company who owns a portion of the businesses stock
purchase shares in the business
businesses goals are to please them
What is a stakeholder?
someone with a vested interest or involvement within a business
could be customers, employees, managers and owners
important for business to maintain good relationship w/ them
What are examples of potential conflicts between stakeholders?
employees want good wages and safe conditions but managers may want to increase profit decreasing wages
managers can cut costs and neglect maintenance making the workplace unsafe
suppliers can use unethical products in order to make more profit, impacting corporate responsibility
all these can lead to disputes or conflicts
What is corporate social responsibility?
a companies obligation to be good
look after the environment and business members
a good company attracts shareholders and stakeholders
Interests of shareholders…
want business to make a profit as it affects their value in shares
want the business to be socially responsible
Why is it important for businesses to take care of stakeholders and shareholders?
Because they supply time, money and effort into business
without them it wouldn’t run
List examples of internal stakeholders
Employees
managers
CEO
owners
shareholders
How would a business please shareholders?
Make large profit and expand their market
How would a business please stakeholders?
treat them with respect
offer support and training
communicate with them
Whats the difference between internal and external stakeholders?
Both are impacted by way business is ran
Internals are part of the business and have control in it
Externals are not part of business and cannot fully be controlled or have control
List examples of external stakeholders
customers
competitors
suppliers
interest groups
trade unions
consumer groups
government`
What vested interest do owners have?
operate/manage business daily
have personal interest in business
reputation and profit of business directly effect owners
What vested interest do CEOs have?
have responsibility of whole business
must be honest and careful because their actions impact whole company
develop direction/strategy for company
usually acquire status/power/shares
What vested interest do managers have?
implement strategies for success over their branch
get salary benefits
introduce new polices/processes/tech to improve efficiency and effectiveness
have most responsibility over employees
What vested interest do employees have?
they work for the business
they get paid for their work
need job security and training
