3.1.4 - Stakeholders

• What is a stakeholder in a business context?

  An individual or organisation with vested interest
• What are the three types of stakeholders?

  • Internal stakeholders
  • Connected stakeholders
  • External stakeholders
• Who are considered internal stakeholders?

  Employees and shareholders/owners
• What defines connected stakeholders?

  Connected by a relationship or contract
• Who are the connected stakeholders?

  Customers, suppliers, and creditors
• What characterizes external stakeholders?

  Relationship not based on a legal contract
• Who are the external stakeholders?

  Competitors, government, and society
• What are the typical objectives of employees as stakeholders?

  • Secure jobs
  • Higher earnings
• What do shareholders typically want to achieve?

  • High dividends
  • Increased share price
• What are the objectives of the government as a stakeholder?

  • Legal behavior
  • Taxes paid
  • Economic growth
• What do suppliers typically seek as stakeholders?

  • Timely payments
  • Being informed of changes
• What are the typical objectives of customers as stakeholders?

  • Good service
  • Value for money
  • Product quality
• Examples of stakeholders

  • managers
  • employees
  • suppliers
  • competitors
  • trade union
  • the media
  • local community
• what is a pressure group?

  An organised group that seeks to influence government or business policies and decisions.
• what is a trade union?

  organisation that works on behalf of employees in one industry
• what does internal mean?

  stakeholders internal to the business
• what does external mean?

  relationship not based on a legal contract
• What is potential conflict between trade unions and the government?

  trade unions might want higher pay but the government might not want to increase their pay
• What is potential conflict between customers and shareholders?

  Customers will want their value for money but shareholders will want higher profits - so will increase the price as their dividend payment will be higher