Stakeholder Interests and Conflicts

Flashcards covering stakeholder interests, potential conflicts, and managing stakeholder influence based on the provided lecture notes.

What are the key interests of suppliers in a business?

Ongoing profitable trade with the business and the business's financial stability.

What do banks and other finance providers consider when assessing their relationship with a business?

The business's ability to repay loaned or invested amounts, its profitability, cash flows, and growth in profits and value.

What are the government's primary interests concerning a business?

The correct collection and payment of taxes (e.g., VAT), the business's growth (creating jobs), and compliance with business legislation.

What is society's interest in the success of a business?

The success of the business, particularly in creating and retaining jobs, and its compliance with local laws and regulations.

Which stakeholders are likely to support a decision to cut jobs or close business units, and who are likely to oppose it?

Supported by banks and shareholders; Opposed by employees and the local community.

Who would likely support a business decision to add extra shifts to increase capacity, and who would likely oppose it?

Supported by management, customers, local community, and suppliers; Opposed by employees.

Which stakeholders are likely to support a business decision to introduce greater automation, and who are likely to oppose it?

Supported by customers and shareholders; Opposed by employees.

Who would likely support a business decision to increase selling prices, and who would likely oppose it?

Supported by shareholders and management; Opposed by customers.

What key question must a business address when managing stakeholder influence and power?

How should a business respond to variations in stakeholder power and influence?