Unit 1 Stakeholders Flashcards
define the term stakeholders
ppl or groups of ppl who can be affected by
+ have an interest in any action of org
examples of stakeholders?
customers
suppliers
employees
shareholders
govt
Local community
Not all ______________ are _____________ but all _____________ are ____________
Not all Stakeholders are shareholders but all shareholders are stakeholders
What is the stakeholder concept
View that that businesses + their managers have responsibilities AND to a wide range of groups NOT JUST SHAREHOLDERS
Explain the responsibilities of the stakeholder group
1. Employees
- Work according + provide serives acc to their contract of employment
Co-orporate with management
Be honest diligent
Obey ethical codes of conduct
-
Explain responsibility of the stakeholder group
2. Suppliers
Supply goods/ materials of desired quality
Deliver on time
Charge a reasonable price
Explain responsibilities of stakeholder group
Customers
To be honest in their dealing with business
Not steal
Pay for goods on time
pay for goods bought or services received
not exploit business make false claims about poor service + underperforming goods or failed items
What are the responsibilities of stakeholder group
Community
- corporate with business where reasonable on–> expansion + other plans
- to meet reasonable requests from business for local services such as public transport ( allowing staff to get to work) + waste disposal
Explain responsibilities of stakeholder group
Government
- treat businesses equally under the law
- prevent unfair competition –> that could damage business survival chances
-establish good trading links with other countries –> allowing international trade
give an example of how business activity affects the stakeholders
positives and negatives
1) BUSINESS DECISION
- eg/ expansion of business by building new branch
2) IMAPACT ON STAKEHOLDER EMPLOYEE
- more job + career opps
-) disruption during building + complex lines of communication
3) POSSIBLE IMPACT ON LOCAL COMMUINITY
- more jobs for local residents
- increase in spending in other local businesses
- ) disruption caused + traffic + noise
4) IMPACT ON CUSTOMERS
- better services + better staff + more staff
-0 large businesses become less personal
- inferior customer service
define CSR
corporate social responsibility
what does CSR mean
CSR requires businesses–> to consider interests of society–> in their activities + decisions BEYOND legal requirements
what are the PROS OF CSR
- shows business cares about society not just money
- can lead to more profitable opps
- long term greater marketing + public r/s
employee motivations benefit
what are the CONS OF CSR
- disracts business from key role of business activity
- expensive
- may reduce profits in short run
- could be viewed as PUBLIC RELATIONS STUNT
What are the businesses responsibility towards Stakeholders/ what are demands of stakeholders/ rights
Customers
satisfying the demands of customers –> also essential for long-term success
ensuring quality + design + durability + safety decisions are made keeping customer in mind
not be taken advantage of –> not breaking law
product what being said should be given
to be offered repalcements + repairs + compensation in event of failure of product or service
What are the businesses responsibility towards Stakeholders/ what are demands of stakeholders/rights
employees
to be treated + paid in ways described in the employee contract
- provide appropriate working standards as per law
- give safe working environment
- to be able to join a trade union
treated within minimum limits established by national law (minimum wage rate)
What are the businesses responsibility towards Stakeholders/ what are demands of stakeholders
suppliers
to be paid on time/ paid propmplyu–> as between the agreement of business and supplier
place regular order
treated fairly by the business purchasing
have reliable suppliers –> boost customer confidence
not to force lower prices on them by larger customer business
What are the businesses responsibility towards Stakeholders/ what are demands of stakeholders
local community
environmental consideration
- consulted about major changes that affect due to expansion plans or changing methods of production
- not effect communities life in negative ways through business activity
What are the businesses responsibilities towards Stakeholders/ what are the demands of stakeholders?
government
business should meet all legal constraints
- pay taxes
- observe laws
publish required accounts
What are the businesses responsibility towards Stakeholders/ what are demands of stakeholders
shareholders
fullfill dividend levels and share price
What are the business responsibilities towards Stakeholders/ what are the demands of stakeholders/ rights
Lenders
- to be repaid on agreed date
- to be paid financial charges (eg loan)
can a business satisfy all stakeholder groups?
- there will always be a need to compromise
- business cannot satisfy everyone –> may result in loss of profit
-these decisions need to be taken by management
mention and explain a stakeholder conflict
stakeholders vs shareholders
trying to please all stakeholders –> may reduce profit which can –> reduce shareholder value
- compromises are made
pros + cons considered - who are the most important stakeholders in this situation
what are customer and supplier roles?
CUSTOMER
- purchase goods and service
- provide revenue from sales –> allows business to function + expand
SUPPLIER
- supply goods + services
- allow the business to offers its products to its OWn customers
what are employees’ and lender roles
EMPLOYEE
- provide manual + other labor services to business –> according to employment contract
allow goods + services to be provided to customers
LENDER
- provide finance to business in different forms
what are local community and government roles
GOVERNMENT
- they pass laws –> that may strain aspects of business activity
- provide law + order –< to allow legal business to take place
achieve eco stability to encourage business activity
LOCAL COMMUNITY
Provide local services + infrastructure to businesses –> allowing them to sell + produce within legal limits
- protecting local environment
- business not expected to affect community in negative ways through their existence
