Stakeholders

• What are customers' main demands from businesses?


  Customers may want low prices and/or higher quality, which can affect profits.
• What does the community expect from businesses?

  The community wants responsible behavior, such as low noise and waste pollution.
• What are suppliers' primary interests in a business relationship?


  Suppliers want long contracts and to be paid on time.
• What might employees desire from their employer?


  Employees may want higher wages and rewards.
• What do owners typically want from a business?


  Owners may want high dividends (financial rewards paid out to shareholders).
• What are stakeholder?


  Individuals/Organisations that have an interest in the business
• How does business success affect employment?


  Business success will affect the number of people employed and their earnings (salaries, bonuses, etc.).
• What impact does timely payment have on suppliers?


  Suppliers that are paid on time are likely to have a positive relationship with the business.
• How does a business's success influence shareholders?


  The success of a business will affect shareholders through the value of shares and ultimately dividends paid.
• In what ways can a business impact the local community?


  The business can impact the local community by employing local people and investing in local projects and schools.
• What role do owners play in influencing business decisions?


  Owners of a business vote on organizational decisions, with partners able to outvote one another.
• How can councils impact a business's operations?


  Councils can refuse to cooperate with businesses if they disapprove of their behavior.
• What is direct action taken by customers against a business?


  Direct action occurs when customers stop buying from a business due to disapproval of its behavior (e.g., strikes, protests).
• How do employees influence business pay and terms?


  Employees try to negotiate better pay and suppliers seek better terms.
• How can stakeholder engagement impact business decisions?


  Engaging stakeholders can provide valuable insights, enhance decision-making, and improve overall business strategies.
• What risks can arise from ignoring stakeholder concerns?


  Ignoring stakeholder concerns can lead to reputational damage, loss of customer loyalty, and potential financial penalties.
• What is the importance of corporate social responsibility (CSR) in stakeholder considerations?


  CSR demonstrates a business's commitment to ethical practices, positively impacting stakeholders and enhancing the company's reputation.
• What is a key consideration for businesses regarding stakeholder interests?

  Businesses must balance the competing interests of various stakeholders, such as owners, employees, customers, and the community.
• Why is effective communication important with stakeholders?


  Effective communication fosters transparency, builds trust, and helps manage expectations among stakeholders.
• What should businesses consider regarding the method of communication with stakeholders?


  Businesses should evaluate the level and method of communication, such as meetings, emails, or media, to ensure effective engagement.
• What is the minimum communication requirement for shareholders in a business?


  Businesses are required to hold an annual general meeting (AGM) of shareholders each year to maintain communication.
• Why is it important for businesses to select the right stakeholders for discussions?


  Selecting the appropriate stakeholders, such as involving employees and managers or just managers, ensures relevant input and effective decision-making.
• How can the choice of communication method impact stakeholder relations?


  The choice of communication method can influence stakeholder perceptions, trust, and overall satisfaction with the business.
• What role does stakeholder feedback play in business communication?


  Stakeholder feedback is crucial for understanding concerns, improving relationships, and informing future business strategies.
• What is the objective of employees as stakeholders?


  Secure Jobs, Higher earnings
• What is the objective of owners/shareholders as stakeholders?


  High dividends and share price
• What is the objective of the local community as shareholders?


  Local jobs, minimise environmental impact on community (e.g. little pollution, congestion, investment in the community)
• What is the objective of the government as a stakeholder?


  Ensure business are behaving legally, paying taxes and growing
• What is the objective of suppliers as a stakeholder?


  Business pay on time, that they are kept informed of any changes to the business (e.g. any proposed reduction in output)
• What is the objective of customers as stakeholders?


  That businesses provide useful, accurate information on the product/service and it is value for money