Unit 1.4 Stakeholders

Question 1

Stakeholder concept

Answer 1

The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders

Question 2

Employees’ interests

Answer 2

Employment security

Wage level and benefits that compare well with similar jobs in other businesses

Good conditions of employment, e.g., health and safety

Some participation in decision making

Question 3

Managers’ interests

Answer 3

Employment security

Salary and benefits that compare well to similar posts of responsibility

Responsibilities offered and status of the post

Profit sharing or share purchase scheme

Question 4

Shareholders’ interests

Answer 4

Pay annual dividends

Share price increasing over time

Security of investment

Ability to sell shares when necessary

Question 5

Customers’ interests

Answer 5

Value for money

Product quality and safety

Guarantees

Service levels

Long-term reward for loyalty

Question 6

Suppliers’ interests

Answer 6

Speed of payment

Level and regularity of orders

Fair treatment

Question 7

Government’s interest

Answer 7

Creation of jobs and incomes that boost the economy

Taxes paid

Value of output produced (Adds to GDP)

Impact on wider society

Question 8

Bank and other creditors’ interests

Answer 8

Security of their loans and the ability of the business to repay them

Prompt payment of interest and capital owned by the business

Question 9

Special interest groups’ interests

Answer 9

Pressure groups - campaigning to achieve a change in business decisions/activities

Local community - encouraging business to act in the community’s interests and to avoid harmful production methods

Question 10

Competitors’ interests

Answer 10

Fairness of competitive prices

Strategic plans of the business

Question 11

Conflict

Answer 11

The situations where people have disagreements on certain matters due to differences in their opinions

Question 12

Directors

Answer 12

The senior members of staff who have been elected by a company’s shareholders to run the business on their behalf

Question 13

External stakeholders

Answer 13

Individuals and groups that aren’t part of an organisation but have a direct interest in its actions

Question 14

Industry trade groups

Answer 14

Organisations that specialize in promoting the aims of a particular industry through education and public relations campaigns

Question 15

Internal stakeholders

Answer 15

Members of an organisation

Question 16

Managers

Answer 16

The people responsible for the daily running of a business or a department within the business

Question 17

Pressure group

Answer 17

An group consisting of individuals with a common concern who seek to place demands on organisations to act in a particular way or to influence a change in their behaviour

Question 18

Shareholder

Answer 18

An individual or organisation who holds a share of a company

Question 19

Shareholder concept

Answer 19

The notion that shareholders are the key stakeholder group as a business ultimately belongs to its shareholders

Question 20

Special interest group (SIG)

Answer 20

The organisation of people who have a common interest and collectively act to achieve that interest

Question 21

Stakeholder mapping

Answer 21

An analytical tool which places different stakeholder groups into quadrants depending on their relative levels of power and interest in an organisation

Question 22

Stakeholder

Answer 22

An individual or organisation that has a direct interest in the activities and performance of a business

Question 23

Trade union

Answer 23

An organization consisting of workers and union leaders, united to protect and promote their common interests.

Question 24

Lobbying

Answer 24

The use of pressure group power to influence key issues (with employers, legal representatives, and the government)

Question 25

Boycotting

Answer 25

The refusal to buy products from a particular business as a sign of protest