Unit 1 - 1.5 - Stakeholders In Business Flashcards
What does ‘role’ refer to in the context of stakeholders?
What a stakeholder may do in connection with the business
What does ‘objectives’ refer to in the context of stakeholders?
What the stakeholder wishes to achieve
List three examples of internal stakeholders.
- Employees
- Managers
- Owners
List three examples of external stakeholders.
- Customers
- Suppliers
- Investors
True or False: Internal stakeholders are only those who have a financial interest in the business.
False
Fill in the blank: The _______ of a stakeholder refers to their actions in relation to the business.
[role]
Fill in the blank: The _______ of a stakeholder refers to their desired outcomes from the business.
[objectives]
Who are external stakeholders?
The local community, suppliers, customers, and government.
Who are internal stakeholders?
The business owners and the people who work in the business.
Define stakeholders.
Groups or individuals who have an interest in a business.
Fill in the blank: _______ are groups or individuals who have an interest in a business.
[Stakeholders]
Who are considered internal stakeholders?
Owners, Employees
Internal stakeholders are individuals or groups directly involved in the business.
What are the roles of internal stakeholders?
- Provide finance to start up and expand the business.
- Manage or run the business or employ managers.
- Produce goods and services.
Internal stakeholders are crucial for the operational and financial aspects of a business.
What are the main objectives of internal stakeholders?
- Make profits.
- Satisfaction of having a job and earning an income.
- Be treated fairly by employers.
- Enjoyment of social aspects of working with colleagues.
These objectives reflect the interests of those working within the organization.
Who are considered external stakeholders?
Customers, Suppliers, Government, Local community
External stakeholders are individuals or groups not directly involved in the business but affected by its activities.
What are the roles of customers as external stakeholders?
- Buy goods and services.
- Enjoy the benefits provided by goods and services.
- Pay affordable prices.
Customers are essential for the revenue generation of a business.
What are the roles of suppliers as external stakeholders?
- Sell goods for resale or components and materials needed to manufacture goods or provide a service.
- Make sales.
- Earn profits.
Suppliers are critical for providing the necessary resources for production.
What are the roles of government as external stakeholders?
- Help businesses, workers, and communities.
- Monitor and influence business activities.
- Encourage businesses as this leads to high employment and prosperous communities.
- Increase taxes paid to government.
Government involvement can significantly impact business operations and regulations.
What is the role of local communities as external stakeholders?
- Have a local area which is prosperous, healthy, and safe.
- Benefit from employment opportunities created by businesses.
Local communities are influenced by the economic activities of businesses in their area.
What are some benefits of business activity for stakeholders?
Profits, jobs and incomes, goods and services, sales, taxes, prosperity
These benefits impact stakeholders positively by enhancing their economic well-being.
What problems can business activity cause for stakeholders?
Financial losses, redundancy, poor goods and services, late or missed payments, bad publicity, negative impacts on the local environment and community
These problems can lead to significant challenges for stakeholders, affecting their overall quality of life.
True or False: Business activity can only have positive effects on stakeholders.
False
Business activities can have both positive and negative impacts on stakeholders.
Fill in the blank: Business activity can lead to _______ for stakeholders, such as redundancy and financial losses.
[problems]
This highlights the potential negative consequences of business operations.
List some positive impacts of business activity on stakeholders.
- Profits
- Jobs and incomes
- Goods and services
- Sales
- Taxes
- Prosperity
These factors contribute to the economic growth and stability of stakeholders.