unit two: chapter 5- stakeholders

Question 1

Name 5 stakeholders within a business

Answer 1

customers
suppliers
employees and their families
local communities
government and government agencies
special interest groups
pressure groups
lenders

Question 2

what are the six responsibilities to stakeholders?

Answer 2

1. to customers
2. to suppliers
3. to employees
4. to the local community
5. to the government
6. to lenders

Question 3

what are 2 benefits for businesses when accepting responsibility for customers

Answer 3

consumer loyalty, repeat purchases, good publicity, word of mouth advertisement, good customer feedback

Question 4

what are 2 benefits for businesses when they accept responsibility for suppliers

Answer 4

supplier loyalty, easier to meet deadlines for requests and special orders, reasonable credit terms more likely to be offered

Question 5

what are 2 benefits to businesses when accepting responsibility to employees

Answer 5

employee satisfaction and loyalty, low labour turnover, easier to recruit good staff, employee suggestions help improve efficiency and customer service, improver motivation, effective communication, higher productivity

Question 6

name 1 role of 3 types of stakeholders

Answer 6

customers- purchase goods and services
suppliers- supply goods and services to allow for businesses to create goods or services
employees- provide manual labor and other forms of labor to provide goods and services to customers
local community- provide local services and infrastructure to the businesses to allow it to operate
government- pass laws that can restrain or allow certain business activities
lenders- provide finance to a business

Question 7

what are 2 benefits to businesses when accepting responsibility for the local community

Answer 7

local councils will be more likely to approve planning permission and expand the business, will be more allowing of the negative impacts on the local environment, can provide financial support for local community so they feel benefited and will help the business thrive, give contacts to businesses with a recored of community involvement

Question 8

what are 2 benefits to businesses when accepting responsibility for the government

Answer 8

good relations with government can lead to success with expansion products and planning permissions, licenses to set up new operations are more likely to be awarded, requests for subsides to expand the business are more likely to be approved

Question 9

define corporate social responsibility

Answer 9

the concept that accepts that businesses should consider the interests of society in their activities and decisions beyond the legal obligations that they have

Question 10

Give one example of how a stakeholder conflict may arise

Answer 10

any example
eg. a supplier wants to deliver the goods at 6am but the local community sees this as being nosey and causing rush hour traffic

Question 11

what is the impact on stakeholders of changing business objectives?

Answer 11

A collapse of sales will occur, leading to job cuts and a large part of the business sold to another business.

Employees’ jobs will be lost and customers will have less choice.