Define the term stakeholder.
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Define the term stakeholder.
A stakeholder is an individual or group that affects or is affected by the actions of a business.
What are internal stakeholders?
Internal stakeholders are individuals or groups inside the business that affect or are affected by the actions of that business.
Give two examples of internal stakeholders.
Examples of internal stakeholders include:
Employees
Managers
Directors
Business owners
What are external stakeholders?
External stakeholders are individuals or groups outside of a business that affect or are affected by the actions of that business.
Give two examples of external stakeholders.
Examples of external stakeholders include:
Customers
Shareholders
Suppliers
The local community
True or False?
Shareholders are always external stakeholders.
False.
Shareholders can be both internal and external stakeholders, as employees and managers may own shares.
Give two primary objectives of employees as stakeholders?
The primary objectives of employees as stakeholders include:
Earning a living
Job security
Fair pay
A safe working environment
What is usually the primary objective of shareholders as stakeholders?
The primary objective of shareholders as stakeholders is usually to maximise the returns on their investment.
Which stakeholder group is likely to be most concerned about a business being environmentally responsible, providing jobs, and contributing to local causes?
The local community is likely to be most concerned about a business being environmentally responsible, providing jobs, and contributing to local causes.
What is a pressure group?
Pressure groups are organisations that seek to influence the policies and actions of businesses or governments.
True or False?
Suppliers often want to be able to establish long-term arrangements with their business customers.
True.
Suppliers often want to be able to establish long-term arrangements with their business customers to improve business stability
What is stakeholder conflict?
Stakeholder conflict is where different business stakeholder groups have conflicting interests and objectives, leading to tensions, disagreements and challenges.
What is stakeholder mapping?
Stakeholder mapping is a tool that helps identify appropriate strategies for managing stakeholder relationships, taking into account the level of interest and degree of power they hold.
True or False?
All stakeholders have equal power and influence over a business.
False.
Stakeholders can have different levels of power and influence, which can lead to conflicts.
True or False?
The needs of stakeholders with low interest and little power can usually be ignored.
True.
The needs of stakeholders with low interest and little power can usually be ignored.
True or False?
Local residents are usually considered to be stakeholders with high interest and a high degree of power.
False.
Employees and shareholders are usually considered to be stakeholders with high interest and a high degree of power.
Which stakeholder group is often represented by trade unions?
Employees are often represented by trade unions.
True or False?
Businesses should always prioritise the needs of shareholders over those of other stakeholders.
False.
Businesses should try to balance the needs of all stakeholders as much as possible to reduce the disruptive impact of conflict.