1.4 Stakeholders

• Enhanced reputation is a benefit of stakeholder engagement.


  True
• Improved risk management is a benefit of stakeholder engagement.


  True
• What are the key benefits of stakeholder engagement?

  Enhanced reputation, innovation
• How are stakeholders categorized?

  Internal and external
• What is the first step in analyzing the needs and interests of stakeholders?

  Understand their perspectives
• What are the typical needs of investors as stakeholders?

  Profitability and growth
• Internal stakeholders include employees, managers, and owners
• Conflicting stakeholder needs must be balanced
• Internal stakeholders shape the internal dynamics of the business through their contributions and job satisfaction
• Match the stakeholder type with examples:

  Internal ↔️ Employees, managers, owners

  External ↔️ Customers, suppliers, investors
• Stakeholder conflicts arise when their needs and interests clash.


  True
• Stakeholder groups often have conflicting needs and interests
• By managing stakeholder conflicts, businesses can build trust
• Promoting cooperation ensures long-term sustainability for a business.


  True
• Steps in effective stakeholder management

  1️⃣ Open communication

  2️⃣ Compromise

  3️⃣ Align stakeholder interests
• Match the stakeholder type with its examples:

  Internal stakeholders ↔️ Employees, managers, owners

  External stakeholders ↔️ Customers, investors, government
• External stakeholders directly affect a business's market performance.


  True
• What are stakeholders in a business context?

  Individuals or groups with interest
• Who are examples of internal stakeholders in a business?

  Employees, managers, owners
• Match the stakeholder type with its impact:

  Internal ↔️ Shapes business operations

  External ↔️ Influences market performance
• Engaging with stakeholders can improve decision-making and build trust
• External stakeholders include customers, suppliers, and local communities
• Internal stakeholders' interests include competitive wages and job security.

  True
• Match the stakeholder group with their typical needs:

  Customers ↔️ Product quality

  Suppliers ↔️ Reliable orders

  Local Community ↔️ Job creation
• Internal stakeholders prioritize job security and career advancement.


  True
• Stakeholders' needs and expectations influence business decisions.


  True
• Understanding and managing stakeholder relationships is crucial for business success.


  True
• Internal stakeholders shape the business's operations and culture.

  True
• Stakeholder cooperation requires open communication, compromise, and aligning interests with business objectives
• Successful businesses strive to balance stakeholder needs.


  True
• Steps to foster stakeholder cooperation

  1️⃣ Open communication

  2️⃣ Compromise

  3️⃣ Align stakeholder interests
• Open communication with stakeholders helps identify potential areas of conflict
• Why is open communication crucial in stakeholder management?

  To understand perspectives
• What do internal stakeholders primarily shape in a business?

  Operations and culture
• What is one example of balancing conflicting stakeholder needs?

  Competitive prices and fair wages
• Stakeholders can affect or be affected by a business's actions, objectives, and policies
• External stakeholders influence market performance and legal compliance
• Order the benefits of stakeholder engagement:

  1️⃣ Enhanced reputation

  2️⃣ Improved risk management

  3️⃣ Greater innovation

  4️⃣ Increased loyalty and retention
• Internal stakeholders are those outside the business.

  False
• Match the stakeholder type with its example:

  Internal ↔️ Employees

  External ↔️ Investors