Business Stakeholders 5 flashcards

Flashcards about Business Stakeholders

Stakeholders

Individuals or groups who can be affected by, and have an interest in, any action taken by an organisation.

External Stakeholders

Individuals or groups who are separate from the business but are affected by or interested in its operations.

Internal Stakeholders

Individuals or groups who work within the business, or own it, and are affected by the operations of the business.

Trade Union

An organisation of working people with the objective of improving the pay and working conditions of its members and providing them with support and legal services.

Stakeholder Concept

The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.

Customers' Role

To purchase goods and services.

Customers' Responsibility

To be honest - to pay for goods bought or services received when requested.

Suppliers' Role

To supply goods and services to allow the business to offer its products to its own customers.

Suppliers' Right

To be paid on time as stated in the service agreement between the business and suppliers.

Employees' Responsibility

To meet the conditions and requirements of the employment contract.

Local Community's Role

To provide local services and infrastructure to the business to allow it to operate, produce, and sell within legal limits.

Local Community's Right

To expect the business to meet all legal constraints, such as producing only legal goods and to pay taxes on time.

Government's Role

To pass laws that restrain many aspects of business activity.

Lenders' Responsibility

To provide the agreed amount of finance on the agreed date for the agreed time period.

Managers' Role

To control, command, and direct resources.

Managers' Responsibility

To act legally and ethically.

Owners/Shareholders' Role

To provide finance.

Owners/Shareholders' Right

To receive accurate reports on business performance.

Benefits of Accepting Responsibilities to Customers

Consumer loyalty and repeat purchases.

Benefits of Accepting Responsibilities to Suppliers

The likelihood of securing reasonable credit terms.

Benefits of Accepting Responsibilities to Employees

Ease of recruiting good workers.

Benefits of Accepting Responsibilities to Local Community

Local councils being more likely to give planning permission to expand the business

Benefits of Accepting Responsibilities to Government

Planning permission for future expansion projects is more likely to be granted

The Body Shop's Action Due to Difficult Trading Conditions

Focusing on cost-cutting by closing some shops to ensure survival and achieve profitability.

Volkswagen's 'Dieselgate' Scandal

Volkswagen deliberately cheating emissions control regulations.

Volkswagen's Current Focus

The company is now focused on being the world's leading manufacturer of electric cars.

Traditional Shareholder Concept

Attempts to meet obligations to other stakeholders will conflict with the business's legal duty to its shareholders.

Compromise in Stakeholder Aims

Meeting as many stakeholder aims as possible.

Impact on stakeholders of changing business objectives

Changing business objectives can have a significant effect on them.

Benefits of Accepting Responsibilities to Customers

Good publicity when customers give word of mouth recommendations to others