Stakeholders

• Who are considered stakeholders in a business?

  Anyone with interest or influence in the business
• What are internal stakeholders?

  Stakeholders that are internal to the business
• Give examples of internal stakeholders.


  Owners, shareholders, employees
• What are external stakeholders?

  Stakeholders that are outside the business
• Name examples of external stakeholders.

  Customers, suppliers, local community
• What might be an objective for owners as stakeholders?

  To achieve their business objectives
• What is a common objective for shareholders?

  To increase dividends or share price
• What objectives might employees have?

  To get more training and higher wages
• What could be a customer's objective?

  To have improved price, quality, reliability
• What is a supplier's objective?

  To increase profits via higher sales
• What might the local community's objective be?

  To have no environmental issues
• Why might stakeholders have conflicts?

  Different objectives can lead to conflicts
• What might employees oppose regarding dividends?

  Increased dividends may limit training funds
• What is a classic conflict example among stakeholders?

  Board of directors vs. employees over dividends
• How are stakeholders categorized on a stakeholder map?

  By their influence and interest levels
• What is a stakeholder map used for?

  To evaluate influence and interest of stakeholders
• What should be done with stakeholders having high influence and interest?

  Manage them closely as key players
• What is the difference between stakeholders and shareholders?

  Stakeholders include all interested parties
• What is the main focus of shareholders?

  To increase their financial returns
• Who are considered stakeholders in a business?

  Anyone with an interest in the business
• What are the two categories of stakeholders?

  Internal and external stakeholders
• What can cause conflicts among stakeholders?

  Business decisions affecting their interests
• What are the potential conflicts when a Board of Directors increases dividends?

  • Shareholders support higher dividends
  • Employees may oppose due to reduced investment
  • Less available for employee training and wages
• What are the implications of introducing automation in a business?

  • Shareholders may benefit from higher profits
  • Customers may enjoy lower prices
  • Employees may face redundancies due to labor reduction
• Why might customers oppose a business decision to increase prices?

  They are unhappy with paying higher prices
• What are the stakeholder conflicts when switching to ethical suppliers?

  • Ethically conscious customers support the switch
  • Price-conscious customers may oppose due to higher costs
  • Ethical suppliers may increase overall expenses
• How can awareness of stakeholder conflicts benefit a business?

  It helps in evaluating and concluding decisions
• What is a potential issue when businesses prioritize shareholders over employees?

  Less investment in employee training and wages
• What is a key strategy for answering longer exam questions about stakeholder conflicts?

  Use stakeholder conflicts to support evaluations
• What is an example of a conflict within the same stakeholder group?

  Price-conscious customers vs. ethically conscious customers
• What might be a consequence of prioritizing dividends for shareholders?

  Reduced funds for employee wages and training
• How might automation affect employee job security?

  It may lead to redundancies for employees
• What is the relationship between price increases and shareholder satisfaction?

  Higher prices may lead to higher profits for shareholders
• Why might ethical suppliers be more expensive?

  They often pay higher wages and use fair trade
• What is a potential benefit of stakeholder awareness in business decisions?

  Improved evaluation and conclusion quality
• What is stakeholder mapping concerned with?

  Anyone with an interest in the business
• What distinguishes internal stakeholders from external stakeholders?

  Internal stakeholders are inside the business
• Who are examples of internal stakeholders?

  Owners, management, employees, shareholders
• Who are examples of external stakeholders?

  Customers, suppliers, government, local community
• What do managers need to do when making decisions regarding stakeholders?

  Manage relationships differently based on influence