stakeholders 1.1

Stakeholder

Any individual/group who is affected by a business and has and interest in its activities

Examples or stakeholders

Shareholders

Directors and mangers

Employees

Trade unions

Customers

Suppliers

Government

The local community

Private sectors

Business is owned by individuals and their main aim is to make profit this include sectors such as :

Sole trades

Partnerships

Private limited/ public limited

Amis of private sectors

Profit

Increase shareholder value

Survival

Growth

Market share and increase sales value

Behaving more ethically

Public sector

Business owned by government income comes from taxes this aim to provide service to public citizens (not profit) . If profit is made it’s used to improve the service e.g tubes, bus ,hospital and police

Example of non profit making private sector

Charity

Independent school / private health care

Social enterprise

All focus on improving services or helping specific cause

What are public goods and importance

Public goods are exclusively provided by government. Importance are they with never be provided by private sectors as they would not be profitable

Features of public goods

Non excludability - you can’t prevent people from using it

Non rivalry - it doesn’t cost any more to supply and extra person

Examples : street lights

Defence

Merit goods

Merit goods bring wider be if it’s to society if they are consumed they are undersupplied by private sectors so government also does at subsidised rates or free at point of entry