1.3 Business stakeholders & their interests##

Stakeholder - definition

Stakeholder - definition

any individual or group that has a vested interest in a business and how it operates

stakeholders

• Business owners (including shareholders & partners)

• Managers

• Employees

• Customers

• Suppliers

• The general community

owners

people who have invested money in a company, hence owning shares of it

owner’s characteristics

owner’s interests

• to gain greater revenue in the form of dividends if the business continues to make profits — they may depend on the success of the business for their income or wealth

• shareholders want the business that they have invested in to make profit as this affects the value of their shares and the amount of dividends they receive

• will typically want the business to conduct itself in a socially responsible manner

managers

those in charge of sections of an organisation

managers characteristics

managers interests

• to perform their roles well, leading to the achievement of the business' objectives.

• they would want the business to be successful so that it continues to operate.

• they may be entitled to bonuses if the business meets performance targets and makes significant profit.

• want the business to perform financially and, in return, expect to be fairly remunerated

• will typically want the business to be socially responsible as this is likely to lead to increased sales

• need to satisfy as many stakeholder expectations as possible while making sure that their position in the business is secure

employees

the workers in a business who are paid an income in exchange for their labour

employee characteristics

employee interests

• to perform their duties well so that they keep their jobs and may be able to pursue career paths and gain promotions

• expect to be paid fairly, trained properly and treated ethically in return for their contribution to production

• need to know that their job is secure in the long term

customers

people or organisations who purchase the goods and/or services that are made by the business

customer characteristics

customer interests

• to continue to be able to purchase products at the price and quality that they have become used to

• expect to purchase quality products at reasonable prices and to receive high levels of service

• are becoming increasingly aware of socially responsible businesses, and many will purchase products from businesses they know have acted in a socially responsible manner

suppliers

supplier characteristics

supplier interests

• to see the business increase its sales, so that its demand for supplies or raw materials increases, earning greater profit for the supplier

• must provide quality materials that are delivered reliably (in the right quantities at the right times) to ensure that the business makes a profit

• expect to be paid promptly and in full

the general community characteristics

the general community interests

• expect that a business will give back to society something of what they take out in generating profit

• expect businesses to show concern for their future welfare through their own employment within businesses

• expect the business to show concern for the environment

Structuring of answer… Sentence 1

State who the stakeholder is

Sentence 2

Provide one of their interests

Sentence 3

State who the second stakeholder is

Sentence 4

Provide one of their interests