Unit 2.3- Understanding the role and importance of stakeholders

Question 1

What are stakeholders?

Answer 1

Stakeholders are groups or individuals who have an interest in a business

Question 2

What are primary stakeholders?

Answer 2

Primary are affected by a particular business activity

Question 3

What are secondary stakeholders?

Answer 3

Secondary do not have a direct functional or financial relationship with the business but are affected and can influence its actions

Question 4

Name the 6 stakeholders groups

Answer 4

Shareholders- 
Employees- 
Customers- 
Suppliers- 
Creditors- 
Local community

Question 5

What does social responsibility mean?

Answer 5

the duties a business has towards stakeholder groups

Question 6

Where is Keep Satisfied on the stakeholder map?

Answer 6

High stakeholder power and low stakeholder interest

Question 7

Where is Manage closely on the stakeholder map?

Answer 7

High stakeholder power and high stakeholder interest

Question 8

Where is Keep informed on the stakeholder map?

Answer 8

Low stakeholder power and high stakeholder interest

Question 9

Where is Monitor on the stakeholder map?

Answer 9

Low stakeholder power and low stakeholder interest.

Question 10

Why would stakeholder mapping be important?

Answer 10

help a business make decisions in relation to stakeholders needs and their ability to influence it.

Question 11

What are the influences on stakeholder relationship?

Answer 11

Market conditions
Stakeholder power
Government policies
Objectives
Management and leadership styles
Size and ownership of the business

Question 12

What is stakeholder engagement?

Answer 12

A process by which managers involve individuals and groups who may be affected by their decisions in those decisions

Question 13

What is pull communication?

Answer 13

• If stakeholders choose to engage with business

- Little power and interest

Question 14

What is push communication?

Answer 14

• One way communications
• Methods such as emails and letters used
• Suited to low levels of power and low levels of interest

Question 15

What is consultation relationship?

Answer 15

• A process by which one group discovers the views of another
• Used when stakeholders have high interest but low power

Question 16

What is participation relationship?

Answer 16

• Stakeholders are a part of the relevant team and involved in decision making
• Suited to stakeholders who have high power but little interest

Question 17

What is partnership relationship?

Answer 17

• Involve the stakeholder more closely on decision or project
• Decisions taken in partnership between managers and relevant stakeholders

Question 18

What are the needs of shareholders?

Answer 18

Steady return on investment. Investment that does not lose value. Preferential treatment as customers.

Question 19

What are the needs of customers?

Answer 19

Reliable supply of goods. Clear pricing policies. Safe products. After-sales service and technical support.

Question 20

What are the needs of local community?

Answer 20

Steady employment. Avoidance of pollution and noise. Provision of facilities for local community.

Question 21

What are the needs of Creditors?

Answer 21

Repayment of money owed at agreed date. Profitable returns on investments. Minimal risk of failure to repay money owed.

Question 22

What are the needs of suppliers?

Answer 22

Frequent and regular orders. A sole-supplier agreement. Fair prices.

Question 23

What are the needs of employees?

Answer 23

Steady and regular income. Safe working conditions. Job security.