Unit 1.4 Stakeholders Flashcards
Stakeholder concept
The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders
Employees’ interests
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
Managers’ interests
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
Shareholders’ interests
Pay annual dividends
Share price increasing over time
Security of investment
Ability to sell shares when necessary
Customers’ interests
Value for money
Product quality and safety
Guarantees
Service levels
Long-term reward for loyalty
Suppliers’ interests
Speed of payment
Level and regularity of orders
Fair treatment
Government’s interest
Creation of jobs and incomes that boost the economy
Taxes paid
Value of output produced (Adds to GDP)
Impact on wider society
Bank and other creditors’ interests
Security of their loans and the ability of the business to repay them
Prompt payment of interest and capital owned by the business
Special interest groups’ interests
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
Competitors’ interests
Fairness of competitive prices
Strategic plans of the business
Conflict
The situations where people have disagreements on certain matters due to differences in their opinions
Directors
The senior members of staff who have been elected by a company’s shareholders to run the business on their behalf
External stakeholders
Individuals and groups that aren’t part of an organisation but have a direct interest in its actions
Industry trade groups
Organisations that specialize in promoting the aims of a particular industry through education and public relations campaigns
Internal stakeholders
Members of an organisation
Managers
The people responsible for the daily running of a business or a department within the business
Pressure group
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
Shareholder
An individual or organisation who holds a share of a company
Shareholder concept
The notion that shareholders are the key stakeholder group as a business ultimately belongs to its shareholders
Special interest group (SIG)
The organisation of people who have a common interest and collectively act to achieve that interest
Stakeholder mapping
An analytical tool which places different stakeholder groups into quadrants depending on their relative levels of power and interest in an organisation
Stakeholder
An individual or organisation that has a direct interest in the activities and performance of a business
Trade union
An organization consisting of workers and union leaders, united to protect and promote their common interests.
Lobbying
The use of pressure group power to influence key issues (with employers, legal representatives, and the government)
Boycotting
The refusal to buy products from a particular business as a sign of protest
