stakeholders

• What are stakeholders in a business?

  Individuals or groups affected by the business and interested in its activities
• Why might different stakeholder groups come into conflict?


  Because they often have different objectives and interests
• What are the common objectives of shareholders in a limited company?

  • Sustained long-term growth
  • Capital gain
  • Increasing income
• How do institutional shareholders differ from individual long-term investors?

  Institutional shareholders often prioritize short-term gains, while individual investors may focus on long-term growth
• What is a potential conflict for directors and managers in large organizations?

  They may prioritize their job security over the long-term objectives of the business
• What do employees primarily seek from their jobs?

  Job security and possibly fringe benefits
• How has the attitude of the labor force changed over the last two decades?

  They have become more accepting of job restructuring and relocation
• What role do trade unions play for employees?

  They help influence pay and conditions for their members
• What do customers expect from businesses?

  Efficient service, quality products, and competitive prices
• What is the relationship between suppliers and businesses?

  They are mutually dependent; suppliers need businesses for sales, and businesses need suppliers for operations
• What is a common issue suppliers face in the market?

  The power often rests with the buyer, leading to lower prices for suppliers
• What is the impact of the big four supermarkets on the UK farming industry?

  They force down the prices paid to producers, reducing farm incomes
• What do fair trade goods aim to achieve?

  They aim to create a more balanced supplier-buyer relationship
• How does government benefit from business success?

  Through increased tax revenues, higher employment, and lower benefit payments
• What are some negative externalities of business success that governments must consider?

  Increased pollution, traffic, and loss of greenfield sites
• What has increased environmental awareness led the government to do?

  Limit developments and encourage the use of brownfield sites
• What is a potential conflict between local communities and businesses?

  Pollution, environmental damage, and loss of open space
• How can local businesses benefit local communities?

  By providing employment, increasing regional wealth, and improving facilities
• What can heavy transport operations affect in local communities?

  The peace and quiet of the community