LO5 Stakeholders in Business PDF

5\. Understand the relationship between businesses and stakeholders 5.1 who the main stakeholders are, i.e. internal stakeholders external stakeholders and their objectives 5.2 the ways in which different stakeholder groups attempt to alter business behaviour 5.1 A stakeholder is any perso...

5\. Understand the relationship between businesses and stakeholders 5.1 who the main stakeholders are, i.e. internal stakeholders external stakeholders and their objectives 5.2 the ways in which different stakeholder groups attempt to alter business behaviour 5.1 A stakeholder is any person, group or organisation which has an interest in a business because they are affected by, or may be affected by, the activities of that business. Internal stakeholders include owners (sole trader, partners), employees (e.g. chief executive, directors, managers, supervisors, assistants), and trade unions. To include external stakeholder groups such as shareholders, customers, suppliers, potential investors, lenders, local community, pressure groups, and central and local government (e.g. HM Revenue & Customs (HMRC), environmental health, planning department). To include internal and external stakeholder objectives; for example, employees' objectives may include job security, pay and benefits, rewards and recognition. 5.2 Consider practical examples from real businesses, (e.g. an environmental pressure group could protest about the expansion plans of a business, causing negative media publicity and a customer boycott or denial of planning permission). 5.3 how businesses respond to the different and sometimes conflicting objectives of different stakeholders 5.3 Business response includes: the degree of influence individual stakeholders possess is likely to determine how businesses respond to the individual stakeholder's objectives conflict resolution and conflict management of stakeholder objectives the benefits and drawbacks of meeting stakeholder needs. 5.4 Including not listening to specific stakeholder groups or a specific stakeholder (e.g. local residents or the business owner). 5.4 the consequences to a business of not listening to its stakeholders