1.5.1 Business Stakeholders

• What are business stakeholders?

  Groups affected by business decisions
• Internal stakeholders are directly affected by business decisions.


  True
• What is a primary objective of owners as business stakeholders?

  Profit maximization
• Why do owners have significant influence on business decisions?

  They control the business
• Match the stakeholder type with an example:

  Internal Stakeholders ↔️ Employees

  External Stakeholders ↔️ Customers
• External stakeholders are indirectly affected by a business's decisions and actions
• What are two objectives of employees as stakeholders?

  Job security, career growth
• What are two needs of the community as stakeholders?

  Social responsibility, economic growth
• Owners have significant influence because they control the business.

  True
• Steps a restaurant should consider when implementing a new menu

  1️⃣ Customer preferences

  2️⃣ Supplier costs

  3️⃣ Employee training

  4️⃣ Environmental impact
• A mining company must engage with the community to address concerns about environmental
• Which of the following is an example of an internal stakeholder?

  Employees
• What is a primary objective of employees as business stakeholders?

  Competitive wages
• Stakeholder influence depends on their stake, power, and urgency of needs.
• Business stakeholders are individuals or groups affected by a business's decisions and actions
• The key business stakeholders are classified into two main groups
• Creditors aim for low risk and timely loan repayment.

  True
• Match the factor influencing stakeholder influence with its description:

  Power and resources ↔️ Ability to exert influence

  Legitimacy of claims ↔️ Legal or moral basis
• Effective stakeholder management enhances trust and relationships
• Customer concerns about unethical labor practices can force a retailer to audit its suppliers.


  True
• Business stakeholders can be classified as either internal or external stakeholders.
• External stakeholders are indirectly affected by the business's decisions and actions.
• Customers seek quality products, value for money, and satisfaction from businesses.


  True
• The community can influence business decisions through public pressure for social responsibility.


  True
• Internal stakeholders are directly affected by a business's decisions.


  True
• External stakeholders are part of the business's internal structure.

  False
• Match the stakeholder with their primary objective:

  Customers ↔️ Affordable pricing

  Suppliers ↔️ Stable contracts
• The degree of stakeholder influence depends on their stake in the business
• What is the primary goal of stakeholder management?

  Balancing stakeholder interests
• What are two actions a company can take to balance employee concerns about automation?

  Retraining, severance packages