3.1.4 characteristics of stakeholders of businesses including their interests and potential conflicts between stakeholders

• Stakeholders are individuals or groups with an interest in a business

Owners

• Owners control a business's assets and profits
• Owners aim to make a return on their investment by sharing in the business's profits
• Owners are often interested in the value of their ownership increasing through capital gains

Managers

• Managers oversee different areas of a business
• Managers make decisions to ensure the business meets its objectives
• Managers want to be involved in setting objectives and ensuring the business achieves them
• Managers expect to be paid fairly for their level of responsibility

Employees

• Employees complete work within a business in exchange for a wage or salary
• Employees want to earn fair pay, have good working conditions, and ongoing employment
• Employees may want to be included in the decision-making process

Customers

• Customers purchase goods and services from a business
• Customers expect to receive a good quality product at a fair price
• Customers expect to receive good value for their money
• Customers expect high-quality service during and after purchase

Suppliers

• Suppliers are organizations that provide resources to a business
• Suppliers want to see the businesses they supply increase in sales
• Suppliers aim to build long-term relationships with the businesses they supply
• Suppliers want to be paid on time

General Community

• The general community is a group of people living in the areas where the business operates
• The general community wants to see local businesses thrive to provide employment opportunities
• The general community expects businesses to contribute to the community
• The general community expects businesses to minimize or improve their impact on the local environment

Potential Conflicts

• Owners want to maximize their return on investment

• Owners may want to reduce wages to improve profits, which upsets employees, as labor costs are high

• Managers are interested in the success of the business for job security, financial, and personal reasons

• Customers determine managers' positions

• Employees want higher wages and better terms and conditions

• These ambitions may damage dividends and share prices for shareholders

• Management wants to keep costs down to improve profits

• Suppliers want higher prices to cover their costs and make their own profits

Explore business stakeholders: owners seeking returns, managers making key decisions, and employees focused on fair pay and conditions. Customers want quality products at fair prices, and creditors require loan repayment.