1.4 Stakeholders

Arbitration

________- to resolve industrial disputes between workers and managers.

Stakeholder concept

________: view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.

allocation of profits

Profit- sharing schemes- to reduce conflict between workers and shareholders over the ________ and to share the benefits of company success.

Stakeholder concept

view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders

Arbitration

to resolve industrial disputes between workers and managers

Worker participation

to improve communication, decision-making and reduce potential conflicts between workers and managers, e.g

Profit-sharing schemes

to reduce conflict between workers and shareholders over the allocation of profits and to share the benefits of company success

Share-ownership schemes

to reduce conflict between workers, managers and shareholders

Stakeholder concept

View that businesses and their managers have responsibilities to a wide range of groups, not just shareholders

Employees, managers and shareholders

3 internal stakeholders

Customers, suppliers, government, banks and other creditors, special interest groups and competitors

6 external stakeholders

Arbitration

To resolve industrial disputes between workers and managers

Worker participation

To improve communication, decision-making and reduce potential conflicts between workers and managers, e.g. works councils, employee directors

Profit-sharing schemes

To reduce conflict between workers and shareholders over the allocation of profits and to share the benefits of company success

Share-ownership schemes

To reduce conflict between workers, managers and shareholders

Employees

Group of people who work for the company, for remuneration

Managers

People who manages the entire department. For example, sale manager, general manager, etc.

Shareholders

People who own shares in a company and therefore, get part of the company's profits and the right to vote on how the company is controlled

Customers

Customers are considered the king of business because they are the one who is going to consume the product

Suppliers

Suppliers provide inputs to the organization like raw material, equipment, etc.

Government

Firm that is guided and controlled by government rules and regulations like it has to pay taxes and duties that are levied on the business

Banks and other creditors

Banks and other creditors provide funds to the organization

Competitors

Rivals who compete with the organization for resources and the market as well

Arbitration; worker participation; profit-sharing schemes; share-ownership schemes

4 methods to reduce stakeholder conflict