A stakeholder is defined as anyone who has an interest in a business. This is not about ownership, it is about being interested in how the business is run.
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what is an example of stakeholders?
bank who have lent money to the owner to start-up
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what is internal stakeholders
owners, employees and manager
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what is the owners role?
The owner is the person (or persons) who started the business with their own money In an older business this may mean a relative of the original owner
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what is the employees role?
Employees work inside the business
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what is the managers role?
Mangers work inside a business They are interested in a business because they may get a financial bonus if they reach targets they have been set
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What is external stakeholders?
These are stakeholders outside the business: Suppliers Local community Government Shareholders Customers Pressure groups
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what is the suppliers do?
Suppliers are interested in the business because they want to know if they will get paid for the goods and services they have provided
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what does the local community do?
The local community are interested in the business because it may pollute the environment, it may cause noise with lorries loading. The community may not want the business to open as it may harm local business trade
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what does the government do?
The government are interested in the business because they want to know that they will pay their taxes. The government also wants to know that they will adhere to any laws that might apply e.g. Health and safety at work Act.
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what are shareholders?
Shareholders are interested in a business because they want to know if a profit will be made and if they will be paid a dividend
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what companys are they in?
private limited company or public limited company
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what does the customers do?
Customers are interested in the business because they want to know they can get quality products and services at low prices
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what do the pressure groups do?
A pressure group is interested in a business because they want to know that they have acted ethically A pressure group can challenge and even change the behaviour of a business
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What can they do?
– writing letters to MPs – contacting the press – organizing marches – running campaigns
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How are stakeholders are affected by business activity?
Business starts a new marketing campaign – more work for the employees, new targets for the managers Business starts to sell more goods abroad – more tax for the government
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what are Possible conflicts between stakeholder groups?
Employees want higher wages but owners and shareholders don’t want to pay higher wages, as this will raise costs and therefore impact profit
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what are the Possible conflicts between stakeholder groups?(Manger)
Mangers want big bonuses but owners and shareholders don’t want to pay them as this will impact costs and lower profits
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What are the Possible conflicts between stakeholder groups? (customers)
Customers want low prices and high quality, but owners and shareholders want high profit so want to charge high prices and quality costs so may also have an impact on profit
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What are the Possible conflicts between stakeholder groups? (Local communities)
Local communities want lower pollution levels, but owners and shareholders want high profits and reducing pollution will raises costs and so may lower profit
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What are the Possible conflicts between stakeholder group?(suppliers)
Suppliers want to get good prices for their goods and services, owners and shareholders want high profits and want to keep their costs low
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