Podcast
Questions and Answers
Which of the following is considered an internal stakeholder in a business?
Which of the following is considered an internal stakeholder in a business?
- Employees (correct)
- Pressure groups
- Shareholders
- Local community
What is a common objective of employees as stakeholders?
What is a common objective of employees as stakeholders?
- Environmental sustainability
- Job security and benefits (correct)
- Increasing brand popularity
- Maximizing shareholder profit
How might external stakeholder pressure groups influence a business?
How might external stakeholder pressure groups influence a business?
- By lobbying for tax reductions
- By providing financial support to the business
- By protesting against business decisions (correct)
- By investing in local development
What is a potential consequence for a business that ignores the objectives of its stakeholders?
What is a potential consequence for a business that ignores the objectives of its stakeholders?
Which factor most influences how businesses respond to stakeholder objectives?
Which factor most influences how businesses respond to stakeholder objectives?
Flashcards
Stakeholder
Stakeholder
Any person, group, or organization interested in a business due to its impact on them.
Internal Stakeholder
Internal Stakeholder
Individuals/groups within a business, like owners, employees, and unions.
External Stakeholder
External Stakeholder
Individuals/groups outside a business, impacting or affected by it, e.g., customers, suppliers, government.
Stakeholder Objectives
Stakeholder Objectives
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Stakeholder Conflict
Stakeholder Conflict
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Study Notes
Understanding Stakeholders and Business Relationships
- Stakeholders are individuals, groups, or organizations interested in a business due to its impact on them.
- Internal stakeholders include owners, employees (various roles), and trade unions.
- External stakeholders include shareholders, customers, suppliers, potential investors, lenders, local communities, pressure groups, and government agencies (e.g., HMRC, environmental health).
- Stakeholder objectives vary, such as job security, pay, benefits, recognition, environmental goals.
Stakeholder Influence and Business Response
- The influence of stakeholders varies depending on their individual power and objectives.
- Businesses respond to stakeholder objectives through methods like conflict resolution and meeting needs.
- Ignoring a stakeholder group (e.g., local residents) or business owner creates negative consequences.
Business Behavior Modification
- Stakeholders pressure businesses to change behaviors.
- Examples include protests (e.g., about expansion plans), negative media publicity, or boycotts.
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