Stakeholders (Unit 1B) - Vocabulary Flashcards

Vocabulary flashcards covering the key stakeholder concepts from Unit 1B notes (stakeholders, rights, obligations, conflict, mapping, concepts, and aims).

Stakeholders

A person or group with an interest in a business, who may affect or be affected by its activities; can be internal or external.

Internal stakeholders

Stakeholders located inside the organization who have an interest in its activities (e.g., employees, managers, owners).

External stakeholders

Stakeholders outside the organization who have an interest in its activities (e.g., customers, suppliers, government, community, lenders).

Stakeholder management

The process of building and maintaining good relationships with stakeholders, recognizing their different needs, aims, and legal rights.

Stakeholder rights

The entitlements of stakeholders, such as fair treatment, informed status, timely payments, and benefits from profits or services.

Employees’ rights

Rights for workers including being treated fairly, paid fairly, and kept informed about the business.

Suppliers’ rights

Right to be paid on time for supplied goods or services.

Owners/Shares’ rights

Right to receive a share of profits.

Customers’ rights

Right to high-quality products and good service; to be kept informed by management.

Government’s rights

Rights related to legal operation and taxes; governments expect compliance and taxes to be paid.

Stakeholder obligations

The duties stakeholders owe to the business and each other in the relationship.

Workers’ obligations

To perform tasks competently and contribute effectively in return for wages.

Suppliers’ obligations

To supply quality goods/services promptly in return for payment.

Customers’ obligations

To provide payment in exchange for products.

Stakeholder conflict

When stakeholder aims are contradictory or impacts conflict, leading to disagreements or tensions.

Stakeholder mapping

The process of assessing stakeholders by their relative interest and power to determine priority and manage conflicts.

Quadrant D

The stakeholder map quadrant with high power and high interest; the most critical group to manage.

Shareholder concept

An approach that prioritizes owners, rewarding them as much as possible and doing the minimum for other stakeholders.

Stakeholder concept

An approach that treats all stakeholders as partners and aims to satisfy them more broadly for long-term success.

Stakeholder aims

Long-term goals of stakeholders that tend to be qualitative.

Stakeholder influence on business activity

The aims, interests, and power of stakeholders shape and influence business decisions and actions.

Two-way relationship

A reciprocal relationship where the business and stakeholders each have rights and obligations to one another.