Stakeholders

• What are stakeholders in a business context?

  Individuals or groups interested in a business
• Why is understanding stakeholders' needs important for businesses?

  To maintain strong relationships and achieve objectives
• What are the two main categories of stakeholders?

  • Internal stakeholders: Employees, owners, managers
  • External stakeholders: Customers, suppliers, government agencies
• Who are the owners/shareholders in a business?

  Individuals providing capital expecting returns
• What do employees expect from their jobs?

  Fair wages, job security, career development
• What do customers expect when purchasing goods and services?

  High quality at fair prices
• What do suppliers expect from businesses?

  Timely payments and long-term relationships
• How can local communities be affected by businesses?

  Through environmental and economic impacts
• What is the government's role concerning businesses?

  Regulates operations and collects taxes
• What are the main objectives of different stakeholders?

  • Owners/Shareholders: Maximize profits, increase share value
  • Employees: Job security, fair wages, career growth
  • Customers: Quality products/services, reasonable prices
  • Suppliers: Regular orders, timely payments
  • Local Community: Job creation, environmental protection
  • Government: Compliance with laws, tax revenue
• How can profitability impact stakeholders?

  Higher profits benefit owners, not others
• What effect do good employment practices have on employees?

  They motivate employees but increase costs
• How can environmental practices affect the community?

  Sustainable operations enhance community well-being
• What might happen if customers demand eco-friendly packaging?

  Businesses may change to maintain sales
• What are some ways stakeholders can influence businesses?

  • Customers can boycott products
  • Employees can strike or reduce productivity
  • Shareholders can vote on decisions
  • Local communities can lobby against practices
• What conflicts can arise between owners and employees?

  Owners want to minimize costs, employees seek higher wages
• How can customer and shareholder objectives conflict?

  Customers want lower prices, shareholders want profits
• What conflict can arise between community and business growth?

  Community may oppose expansion due to concerns
• What are some methods to resolve stakeholder conflicts?

  • Negotiation for compromises
  • Corporate Social Responsibility (CSR) practices
• What strategies help manage stakeholder relationships?

  • Regular updates on performance
  • Feedback mechanisms for concerns
  • Partnerships for shared challenges
• What steps should be taken to understand stakeholders?

  1. Identify key stakeholders and roles
  2. Understand objectives and conflicts
  3. Learn impacts of business activities
  4. Explore stakeholder influence examples
  5. Develop management strategies
• What is the conclusion about stakeholders' role in business?

  They are critical for success and sustainability