IBDP Business Management – 1.4 Stakeholders

Vocabulary flashcards covering internal and external stakeholder groups, management levels, legal terms, and key concepts related to stakeholder interests and conflicts in IB Business Management.

Stakeholder

Any individual or group with a vested interest in the activities and outcomes of an organization.

Internal Stakeholders

People or groups that are part of the organization—e.g., employees, managers, directors, and shareholders.

External Stakeholders

Individuals or organizations outside the business that are directly affected by its actions—e.g., customers, suppliers, and the government.

Employees

Workers within a firm whose motivation and productivity directly affect business performance.

Managers

Personnel hired to oversee specific functions or departments and be responsible for achieving organizational objectives.

Senior Management

Top-level managers or directors who plan and control long-term strategies and supervise middle managers.

Middle Management

Managers who run individual departments; they set departmental objectives and report to senior management.

Junior Management

Lower-ranking or supervisory managers who monitor daily tasks and report to middle managers.

Directors (Executives)

Senior managers legally responsible for running a company on behalf of shareholders.

Executive Directors

Full-time directors who work in the organization and make key strategic decisions.

Non-Executive Directors

Consultants who do not work full-time in the organization but advise the Board on strategy.

Shareholders (Stockholders)

Individuals or entities that own shares in a company and are entitled to dividends and voting rights.

Dividend

A portion of company profits distributed to shareholders.

Voting Rights

Shareholder privilege to vote on corporate matters, usually proportionate to share ownership.

Person with Significant Control (PSC)

An individual who holds over 25 % of shares, voting rights, or can appoint/remove the majority of directors.

Return on Investment (ROI)

Financial gain expected by shareholders relative to the amount invested in the company.

Performance-Related Bonus

Extra pay awarded to managers or employees based on measurable performance targets.

Operational Efficiency

The ability of an organization to deliver products or services cost-effectively while ensuring quality.

Labour Productivity

Output produced per employee; a key measure of managerial performance.

Customers

Clients who purchase the firm’s goods or services and seek value for money.

Value for Money

The balance between price paid and quality received by customers.

After-Sales Support

Customer service provided following the purchase of a product, enhancing satisfaction and loyalty.

Competitors

Rival businesses operating in the same industry and interested in the firm’s strategies and performance.

Benchmark Data

Performance metrics (e.g., sales, market share) used by firms to compare themselves with rivals.

Remuneration Package

Total pay and benefits offered to employees, including salary and fringe benefits.

Financiers

Banks, investors, or other lenders that provide funds and expect repayment with a positive yield.

Yield (Financial Return)

Income generated from an investment, sought by financiers.

Labour Union (Trade Union)

An organization that protects worker interests regarding pay, benefits, and working conditions.

Pressure Group

An organized body of like-minded individuals aiming to influence business or government policy on specific issues.

Suppliers

Firms that provide raw materials, components, or services to another business.

Government (as Stakeholder)

Public authority that regulates business activity through laws, taxes, and standards.

Local Community

Residents and businesses in the area affected by a company’s operations, seeking jobs and social responsibility.

Consumer Protection Legislation

Laws safeguarding buyers from unfair business practices.

Employment Laws

Regulations governing worker rights, pay, and working conditions.

Environmental Protection Guidelines

Rules designed to minimize business impact on the natural environment.

Equal Opportunities Legislation

Laws aimed at preventing discrimination in the workplace.

Health and Safety Standards

Regulations ensuring safe working environments for employees.

Stakeholder Conflict

Mutually incompatible interests between different stakeholder groups, leading to disputes if unmanaged.

Market Share

A company’s sales as a percentage of total industry sales, used to measure competitiveness.

Market Growth

The rate at which a market’s total sales volume is increasing, reflecting industry attractiveness.