3.4.3 Stakeholders

• Stakeholders are individuals, groups, or organizations that have an interest in a business and can affect or be affected by its decisions and activities
• Stakeholders include only customers and employees.

  False
• Customers are interested in product quality, price, and service
• Match the stakeholder group with their key interests:

  Employees ↔️ Job security, fair wages, working conditions

  Shareholders ↔️ Return on investment, profitability
• Understanding and managing stakeholder relationships is crucial for a business to achieve its goals and maintain sustainability
• Key stakeholders always have identical interests.

  False
• What are customers primarily interested in?

  Quality products at affordable prices
• Shareholders are interested in profitable returns on investment
• Order the methods by which stakeholders influence business decisions:

  1️⃣ Demand from consumers

  2️⃣ Compliance with government regulations

  3️⃣ Reputation through community support

  4️⃣ Investment decisions by shareholders
• Employees influence business decisions through HR policies and employee training programs
• Shareholders influence business decisions through investment decisions and dividend policy.
• How does the local community influence business decisions?

  CSR initiatives, partnerships
• How do customers influence business decisions?

  Product development, pricing strategies, customer support
• What is the primary influence of employees on business decisions?

  HR policies, employee training programs
• How do shareholders influence business decisions?

  Investment decisions, dividend policy
• Stakeholders can influence business decisions through various means.
• Match the stakeholder group with their influence on business decisions:

  Suppliers ↔️ Supply chain management, pricing agreements

  Local Community ↔️ CSR initiatives, community partnerships

  Government ↔️ Regulatory compliance, policy advocacy
• What is the role of the government as a stakeholder in business?

  Regulatory compliance, policy advocacy
• Understanding stakeholder influences is crucial for a business to achieve its goals and maintain sustainability
• Stakeholders influence business decisions through consumer preferences, employee input, investment decisions, and government regulations.
• What are stakeholders in business?

  Individuals, groups, or organizations
• Stakeholders can affect or be affected by a business's decisions and activities
• What are key stakeholders in business?

  Those with significant interest
• The interests of different stakeholders can conflict, requiring businesses to prioritize them.
• Match the stakeholder group with their key interests:

  Customers ↔️ High-quality products at affordable prices

  Employees ↔️ Job security, fair wages, safe working conditions

  Shareholders ↔️ Profitable returns on investment

  Local Community ↔️ Environmental protection, job creation
• What are the key methods by which stakeholders influence business decisions?

  Demand, compliance, reputation, investment
• Stakeholder engagement involves businesses actively communicating and collaborating with interested parties
• What are the benefits of stakeholder engagement?

  Builds trust, gathers feedback
• Stakeholder conflicts arise when the interests of different groups clash.
• What is an example of a conflict between shareholders and the local community?

  Profit vs. Social Responsibility
• Methods to resolve stakeholder conflicts include compromise, negotiation, and mediation