U3.3: Influences in the Business Environment - Stakeholders

Question 1

Stakeholder

Answer 1

• any group or individual who has an interest in, or is affected by the activities of a business
• important to identify stakeholders before major decisions are made
• stakeholders can be internal or external

Question 2

Internal Stakeholders

Answer 2

within the business operations
- employees
- owners
- managers

Question 3

External Stakeholders

Answer 3

outside of the business operations
- general public
- society
- environment
- customers
- suppliers
- bank

Question 4

Responsibility to Stakeholders

Answer 4

• business must pursue goals to similar to their stakeholders
• must take in to account their needs and interests to be recognised as a good, ethical, lawful business
• could lead to conflicts between different stakeholders

Question 5

Responsibility of Stakeholders to a Business

Answer 5

shareholders
- provide information about performance
- produce an annual report
- manage the funds for a reasonable return
employees
- fair pay and conditions
- provide safe working environment
- access to training and development
customers
- quality products
- fair prices
- safety
- service during and after sales
society
- fair and honest business practices
- ethically responsible decisions
environment
- consider impact on environment
- care and preservation of environment
- sound and responsible environmental management
governments
- pay taxes
- abide by the laws
suppliers
- pay debts
- act ethically and honestly