Business Stakeholders (Edexcel GCSE Business)

• Shareholders are individuals or entities who own a portion of a company's stock

• They invest in the company to make a profit

• Shareholders' primary objective is to maximise their returns on investment

• They want the company to be profitable and generate a high return on their investment

• For example, a shareholder of Apple may want the company to release new products and increase sales to increase the value of their shares

• Employees are individuals who work for a company

• Their primary objective is to earn a living, have job security and be compensated fairly for their work and have a safe working environment 

• For example, Google employees in California have some of the best working conditions in the world, with the Company offering sleeping pods, games rooms and free speciality coffee all-day

• Managers are individuals who are responsible for the day-to-day operations of a company

• Their primary objective is to meet the company's goals and objectives

• They want to maximise profits and minimise costs while ensuring that the company operates efficiently

• For example, a manager of McDonald's may want the restaurant to increase sales and reduce costs by improving efficiency

• Suppliers are individuals or businesses who provide goods or services to a business

• Their primary objective is to sell their products or services and make a profit

• Suppliers want to be paid on time and have a long-term relationship with the company

• For example, Busco Sugar Milling Co., Inc supplies Coca-Cola with 84% of its sugar requirements. They want the company to continue buying their sugar and to pay their bills on time

• Customers are individuals or businesses who purchase goods/services from a business

• Their primary objective is to receive high-quality products or services at a fair price

• Customers also want good customer service and a positive experience with the company 

• For example, a customer of Nike may want the company to provide high-quality shoes at a reasonable price - and to deal promptly with any customer concerns issues

• Pressure groups are organisations that seek to influence the policies and actions of businesses or governments

• Their primary objective is to promote a specific cause or agenda

• Pressure groups want the company to support their cause or take action on an issue

• For example, an animal rights group may want a clothing company to stop using animal products in their clothing

• The local community includes individuals and organisations that live or operate in the area where a business operates

• Their primary objective is for the business to have a positive impact on the community

  • This may include  the business being environmentally responsible, providing jobs, and contributing to local causes

• For example, Burnley Savings & Loans Ltd (Bank of Dave) donates all of their profits to local charities and good causes

• The government is responsible for creating and enforcing laws and regulations that affect businesses

• Their primary objective is to promote the public good and protect the interests of citizens

• The government wants companies to operate within the law and contribute to the economy

• For example, the government may want a company to pay taxes, comply with environmental regulations, and create jobs

Employees vs. Employers

• In 2020, British Airways faced criticism from its employees and unions after announcing plans to cut 12,000 jobs and reduce pay and benefits for remaining staff due to the impact of the COVID-19 pandemic on the airline industry

• The cuts were met with protests and legal challenges from unions and employees, who argued that the airline was unfairly targeting its workers

Pressure Groups vs. Government

• In 2019, Extinction Rebellion, a climate change activist group, organised protests across the UK to demand government action on climate change

• While the group had the support of many members of the public, some politicians criticised the protests for disrupting public order and causing economic damage

Local Communities vs. Developers

•  In 2019, plans to build a new high-speed rail line, HS2, faced opposition from residents of areas affected by the proposed route, who argued that the project would damage the environment, disrupt communities, and be too expensive

• The project also faced opposition from environmental groups who argued that the resources could be better spent on other infrastructure projects