1.4 Stakeholders

• Match the internal stakeholder with their key interest:

  Employees ↔️ Job security, fair wages

  Owners/Shareholders ↔️ Profitability, business growth
• What are stakeholders in a business context?

  Individuals or groups with interest
• What are the two main categories of stakeholders?

  Internal and external
• Businesses must balance the diverse interests of stakeholders when making decisions.


  True
• Match the stakeholder group with their key interest:

  Employees ↔️ Job security, fair wages

  Customers ↔️ Quality products, value

  Local Community ↔️ Environmental responsibility
• Stakeholder conflict can occur between owners who want higher profits and employees who want better wages
• Stakeholder conflict arises because stakeholders often have divergent goals and priorities.


  True
• What is the primary reason for stakeholder conflict in businesses?

  Differing goals and priorities
• Internal stakeholders are part of the business itself
• Customers are external stakeholders whose key interest is quality products and services
• Who are the main internal stakeholders of a business?

  Employees, owners, managers
• What is stakeholder conflict in business?

  Opposing stakeholder interests
• What is a common example of conflict between owners and employees in a business?

  Higher profits vs. higher wages
• Match the stakeholder group with their key interest:

  Employees ↔️ Job security

  Owners/Shareholders ↔️ Profitability

  Customers ↔️ Quality products

  Suppliers ↔️ Prompt payments
• External stakeholders are individuals or groups outside the business
• Businesses prioritizing growth at the expense of the environment can cause conflict with the local community.


  True
• Match the external stakeholder with their key interest:

  Suppliers ↔️ Long-term contracts, prompt payments

  Local Community ↔️ Environmental responsibility, job creation
• Understanding stakeholder interests helps businesses make informed decisions that benefit all parties
• Stakeholder conflict often arises due to divergent goals and priorities.


  True
• Businesses must balance competing stakeholder interests to ensure long-term success and sustainability
• Who are the main internal stakeholders in a business?

  Employees, owners, managers
• Match the external stakeholder with their key interest:

  Customers ↔️ Quality and value

  Suppliers ↔️ Long-term contracts

  Government ↔️ Compliance with laws

  Local Community ↔️ Environmental responsibility
• Strategies for managing stakeholders in order of effectiveness:

  1️⃣ Understanding stakeholders

  2️⃣ Stakeholder communication

  3️⃣ Stakeholder consultation

  4️⃣ Stakeholder engagement

  5️⃣ Conflict resolution