Stakeholders

• What are stakeholders in a business context?

  Individuals or groups affected by business decisions
• Why are employees considered internal stakeholders?

  They are affected by business decisions on salaries
• Who are considered external stakeholders?

  Suppliers, communities, and customers
• How are suppliers affected by business decisions?

  Through order quantities and payment terms
• In what way are communities external stakeholders?

  They are affected by local jobs and traffic congestion
• How do customers qualify as external stakeholders?

  They are affected by products and prices charged
• What methods can businesses use to manage relationships with stakeholders?

  • Communication
  • Consultation
• What is the purpose of communication with stakeholders?

  To share information and keep stakeholders informed
• How does consultation benefit stakeholder relationships?

  It investigates stakeholders' views and feelings
• What must businesses consider regarding stakeholder power and interest?

  They must manage relationships accordingly
• What is a stakeholder map used for?

  To display relative power and interest of stakeholders
• How should businesses manage stakeholders with high power and high interest?

  They need to be managed closely and consulted
• What should businesses do for stakeholders with high power and low interest?

  Keep them satisfied to avoid dissatisfaction
• What is required for stakeholders with low power and low interest?

  They need to be monitored for influence
• How should businesses approach stakeholders with low power and high interest?

  Keep them informed and consult when appropriate
• Why do Morrison's shareholders have high power and interest?

  They can vote at AGMs and receive dividends
• Why do Google employees have high interest but low power?

  They cannot influence major business decisions
• What influences the relationship between a business and its stakeholders?

  • Expertise and skill level of staff
  • Business performance
• How does staff expertise affect employer-employee relationships?

  Employers may consult staff for their expertise
• How does poor business performance affect stakeholder relationships?

  It may require stronger relationships with customers