Topic 1.4 Stakeholders. Flashcards
Define “dividends”
Dividends are the financial rewards paid out to shareholders each year.
Define “negotiation”
Negotiation is when two sides discuss what they want and try to reach a solution.
What do employees want from businesses?
Secure jobs, higher earnings.
What do owners/shareholders want from businesses?
High dividends and share prices.
What do the local community want from businesses?
Local jobs, little environmental impact on community.
What do governments want from businesses?
Legal behaviour, taxes paid, growth.
What do suppliers want from businesses?
Paid on time, informed on business change.
What do customers want from businesses?
Accurate product info, good service, value for money.
How does negotiation affect the business?
Employees may negotiate for higher pay and suppliers may negotiate better terms and conditions.
How may direct action affect the business?
Customers may stop purchasing products from the business if they are unhappy.
How may refusal to co-operate affec the business?
Could refuse planning permission to expand. Employees work rates could change if they disagree with owners.
How does voting affect the business?
Vote on actions of the business. Who ever gets majority makes decisions.
