1.5 Stakeholders in business

• A stakeholder in a business is any individual or group that has an interest in, or is affected by, the business's actions
• Match the stakeholder type with their key interest:

  Employees ↔️ Job security, Fair wages, Career development

  Suppliers ↔️ Regular orders, Timely payments, Stable contracts

  Creditors ↔️ On-time loan repayments, Low risk of default

  Local Community ↔️ Job creation, Environmental sustainability, Community development
• External stakeholders have a direct impact on daily operations

  False
• Match the stakeholder type with their key interest:

  Employees ↔️ Job security, Fair wages, Career development

  Suppliers ↔️ Regular orders, Timely payments, Stable contracts

  Creditors ↔️ On-time loan repayments, Low risk of default

  Government ↔️ Tax compliance, Legal adherence, Environmental regulations
• External stakeholders affect the business's strategy and reputation


  True
• What are the key interests of owners/shareholders in a business?

  Profitability, Growth, Dividends
• Internal stakeholders are people who work within the business
• Stakeholders in a business are any individuals or groups affected by its actions
• Internal stakeholders are people who work within the business
• Stakeholders are individuals or groups with an interest in, or affected by, a business's actions
• What is a key interest of employees in a business?

  Job security
• Shareholders are interested in the business's profitability, growth, and dividends
• Match the stakeholder type with their key interest:

  Suppliers ↔️ Regular orders

  Creditors ↔️ On-time loan repayments

  Local Community ↔️ Job creation

  Government ↔️ Tax compliance
• Businesses must balance the competing interests of stakeholders to ensure long-term success and sustainability
• Stakeholder prioritization determines which stakeholders have the greatest influence and impact
• What is the goal of stakeholder alignment in managing relationships?

  Minimize conflicts
• Owners and shareholders are primarily interested in profitability, growth, and dividends
• Employees seek job security, fair wages, and career development
• Suppliers may increase procurement costs if higher prices are agreed
• Internal stakeholders have a direct impact on daily operations
• Owners/shareholders are primarily interested in the business's profitability
• Steps in managing stakeholder relationships:

  1️⃣ Stakeholder Identification

  2️⃣ Stakeholder Prioritization

  3️⃣ Stakeholder Engagement

  4️⃣ Stakeholder Alignment

  5️⃣ Stakeholder Compromise
• Examples of internal stakeholders include owners, managers, and employees
• What are stakeholders affected by in a business's actions?

  Its interests
• Considering employee interests can increase operational costs for a business.


  True
• What type of stakeholders operate outside the business but affect its strategy?

  External stakeholders
• What type of relationship do customers and suppliers have with a business?

  Transactional
• What does stakeholder identification involve?

  Understanding their interests
• Stakeholders can have a significant influence on the decisions and actions of a business
• Stakeholders in a business have uniform interests and expectations.

  False
• Customers are interested in quality products/services, fair prices, and good service
• Creditors are concerned with on-time loan repayments and low risk of default
• External stakeholders directly influence daily operations.

  False
• Match the stakeholder type with their key interest:

  Owners/Shareholders ↔️ Profitability

  Customers ↔️ Quality products/services

  Employees ↔️ Job security

  Suppliers ↔️ Regular orders

  Creditors ↔️ On-time loan repayments

  Local Community ↔️ Environmental sustainability
• Stakeholders often have conflicting interests
• Balancing conflicting stakeholder interests is a major challenge
• Customers' interest in fair prices can reduce profit margins if prices are lowered significantly


  True
• Who are examples of external stakeholders in a business?

  Customers, suppliers, local community
• What are the key interests of customers in a business?

  Quality products/services, Fair prices
• What are examples of external stakeholders in a business?

  Customers, suppliers, local community