Business stakeholders & legislation

• What are stakeholders in a business context?

  Those affected by the business
• What are the main stakeholder groups in a business?

  • Owners/investors
  • Employees
  • Customers
  • Suppliers
  • Local residents
  • Government
• How do employees positively impact a business?

  They affect the quality of the product
• How do suppliers positively impact a business?

  They help efficiency
• What negative impact can customers have on a business?

  They leave bad reviews
• What negative impact can pressure groups have on a business?

  They can create negative publicity
• What are the objectives of different stakeholder groups?

  • Owners/investors: high profit + dividends
  • Employees: high pay
  • Customers: low prices, good quality
  • Suppliers: regular orders, high price for raw materials
  • Local residents: jobs created, no pollution or disruption
  • Government: high tax, create jobs
• What positive impact does a business have on stakeholders?

  Creates jobs
• What service does a business provide to stakeholders?

  Provides a service
• What negative impact can a business have on stakeholders?

  Pollution
• What types of pollution can a business cause?

  Noise and air pollution
• What is a conflict between stakeholder groups?

  When two stakeholders want different things
• How must a business decide between conflicting stakeholder interests?

  By determining which stakeholder is more important
• What does consumer law protect?

  Consumers
• What must goods be free from according to consumer law?

  Defects
• What must product descriptions be according to consumer law?

  Accurately labeled and informative
• What is the Consumer Rights Act's requirement for goods?

  Goods must be "fit for purpose"
• What rights do consumers have under the Consumer Rights Act?

  Right to refund or repair
• What does employment law protect?

  Workers
• What aspects of recruitment does employment law cover?

  Adverts, checks, and contracts
• What is the minimum wage?

  The lowest legal pay for workers
• What does equal pay mean?

  Same pay for the same work
• What are protected characteristics under discrimination law?


  Race, religion, sex, age, disability, sexuality
• What does health and safety legislation ensure?

  Safe workplaces and trained employees
• What must be recorded and investigated according to health and safety laws?

  Accidents
• What are the impacts of legislation on businesses?

  • Costs for training
  • Equipment for safety
  • Motivated workers if obligations met
  • Satisfied customers if obligations met
  • Compensation if obligations not met
  • Bad reputation if obligations not met
  • Cost of refund/repair if obligations not met
  • Possible prison sentences if obligations not met
• What happens if a business meets its legal obligations?

  Motivated workers and satisfied customers
• What are the consequences if a business does not meet its legal obligations?

  Compensation, bad reputation, costs, prison