Understanding the role and importance of stakeholders

Flashcards based on AQA A Level Business 3.2.3 Understanding the role and importance of stakeholders.

Stakeholder

Anyone who has an interest in the business and is impacted by the way that it trades.

Owners (Internal Stakeholder)

The person (or persons) who started the business; interested in making a profit and achieving the business objectives.

Employees (Internal Stakeholder)

Work inside the business; interested in job security, pay rates, and promotional prospects.

Managers (Internal Stakeholder)

Work inside a business and are in charge of the employees on a day-to-day basis; interested in financial bonuses, resource management costs, budgets and targets.

Competitors (External Stakeholder)

A rival business working in the same industry; want to know what other businesses are doing so that they can plan to keep ahead and maintain competitive advantage.

Suppliers (External Stakeholder)

Interested in the business because they want to know if they will get paid for the goods and services they have provided and want to know about future orders.

Customers (External Stakeholder)

Want to know they can get quality products and services at low prices and that satisfy their needs.

Government (External Stakeholder)

Interested in the business because they want to know that they will pay their taxes, want to know they will adhere to any laws and want the business to provide jobs.

Local Community (External Stakeholder)

Interested in the business because it may pollute the environment or cause noise; may be concerned about the impact on house prices.

Shareholders/Investors (External Stakeholder)

Interested in a business because they want to know if a profit will be made and if they will be paid a dividend.

Stakeholder Map

A visual representation of individuals, groups or organizations that can have an influence on a business.

Stakeholder consultation

The development of constructive relationships over the long-term; enables the business to identify any possible concerns or problems and to listen to them and develop solutions before they become much bigger problems

Pressure Group

A group that tries to influence public policy in the interest of a particular cause.