Unit 1.4: Stakeholders

pressure groups

a group of people who buy to influence business activity in the interests of their members and supporters

financiers

someone that provides money for projects or businesses

dividends

a percentage of the profits received by a shareholder

negotiation

a strategic discussion intended to resolve an issue that both parties find acceptable

direct action

form of action that seeks to directly achieve their goals

Why do suppliers have an interest in a business doing well?

• regular orders from their customers (the other businesses)

• prompt payment

How can suppliers influence how a business operates?

• change prices of goods

• changing delivery times

• alter quality of their goods/materials

Why do owners/shareholders have an interest in a business doing well?

• make a profit

• receive high dividends

How can owners/shareholders influence how a business operates?

• investing/withdrawing equity into the business

• changing management

Why do employees have an interest in a business doing well?

• job security

• higher pay

• improved working conditions

How can employees influence how a business operates?

• change productivity

• providing good/bad customer service

• going on strike

Why do customers have an interest in a business doing well?

• quality products and services

• low prices

• value for money

How can customers influence how a business operates?

• deciding whether or not to purchase the product or use the service

• word of mouth

Why do financiers have an interest in a business doing well?

the organisation can pay their loans in full and on time

How can financiers influence how a business operates?

• permitting/denying loan requests

• changing interest rates

• changing repayment lengths

Why does the government have an interest in a business doing well?

• pay corporation tax

• create jobs and wealth

• provide goods and services

How can the government influence how a business operates?

• raising/lowering corporation tax

• introducing/repealing laws that affect businesses

• offering grants

Why does the local community have an interest in a business doing well?

• firms to bring jobs to the area

• good, safe environment to live in

• good transport and communication links

How can the local community influence how a business operates?

• protesting and petitioning if unhappy at an organisation’s conduct

What do pressure groups want from a business?

• to behave more ethically or to act in a more environmentally friendly way