1.5 Stakeholders in Business

• What is the primary interest of owners/shareholders in a business?

  Maximizing profits
• Match the internal stakeholder group with their primary interest:

  Owners/Shareholders ↔️ Maximizing profits

  Employees ↔️ Job security

  Managers ↔️ Achieving organizational objectives
• Businesses must balance the needs of both internal and external stakeholders.


  True
• What is the primary interest of employees in a business?

  Job security, fair pay, good conditions
• The interests of different stakeholder groups can often conflict with each other.


  True
• What is the primary interest of customers in a business?

  High-quality products at low prices
• Unlike external stakeholders, internal stakeholders are directly involved in the day-to-day activities of the organization.
• Match the stakeholder group with their interaction with the business:

  Owners/Shareholders ↔️ Provide capital

  Employees ↔️ Contribute labor

  Customers ↔️ Purchase products

  Suppliers ↔️ Provide raw materials

  Local Community ↔️ Expect social responsibility
• Stakeholders are individuals or groups that have an interest in the activities and performance of a business.
• External stakeholders are individuals or groups outside the business that have an interest in its activities and performance.
• Match the external stakeholder group with their primary interest:

  Suppliers ↔️ Reliable orders and prompt payment

  Local Community ↔️ Minimizing negative impacts

  Government ↔️ Compliance with laws
• Balancing the diverse interests of stakeholders is crucial for long-term business success.

  True