1.3 business stakeholders, their characterstics & 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)ManagersEmployeesCustomersSuppliersThe 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 wealthshareholders 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 receivewill 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 remuneratedwill typically want the business to be socially responsible as this is likely to lead to increased salesneed 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 promotionsexpect to be paid fairly, trained properly and treated ethically in return for their contribution to productionneed 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 toexpect to purchase quality products at reasonable prices and to receive high levels of serviceare 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 suppliermust provide quality materials that are delivered reliably (in the right quantities at the right times) to ensure that the business makes a profitexpect 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 profitexpect businesses to show concern for their future welfare through their own employment within businessesexpect 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