Stakeholders in Business 5

These flashcards cover key concepts related to stakeholders in a business, their roles, responsibilities, and the implications of business decisions.

What is a stakeholder in a business context?

An individual or group with an interest in the operation/activities of a business.

Who are the main stakeholders in a business?

Owners (Shareholders), Government (and their agencies), Customers, Special interest groups, Suppliers, Employees, Lenders (and their families), Local communities.

What responsibilities do customers have towards suppliers?

To pay for goods/services when requested, not to steal, not to make false claims about goods & services.

What responsibilities do suppliers have towards businesses?

To supply goods & services on time and in proper condition.

What impacts do business decisions have on employees?

Business decisions may create more job opportunities but may also lead to job losses due to rationalization.

How can local communities react to a business decision to build a new factory?

They may seek to refuse planning permission or organize petitions.

What is Corporate Social Responsibility (CSR)?

A business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.

How does CSR relate to business ethics?

CSR is part of business ethics, focusing specifically on a company's social obligations to society.

What is an example of stakeholder conflict?

Owners seeking high profits may not be willing to pay high wages, creating conflict with employees seeking fair compensation.

What are the responsibilities businesses have towards the government?

To not break laws, pay taxes on time, and meet legal responsibilities defined by government legislation.