Business Stakeholders Flashcards

All 13 cards in this deck

What is a business stakeholder?

Any individual or group with an interest in, or affected by, the activities of a business.

Name four internal or external stakeholder groups of a small business.

Any four of: shareholders (owners), employees, customers, managers, suppliers, the local community, pressure groups, the government.

What is the main objective of shareholders (owners) as stakeholders?

A good return on their investment — profit, dividends and a rising value of the business.

What do employees want as stakeholders of a business?

Job security, fair pay, good working conditions and chances for promotion/training.

What do suppliers want as stakeholders of a business?

Regular orders and to be paid in full and on time.

Give one reason the government would want a small business to be successful.

It will collect more tax from the business's profits — or more people will be employed.

What is a pressure group?

An organised group of people who campaign to change the behaviour of businesses or government.

How can a pressure group impact a business?

It can damage the brand image so customers switch to ethical brands and sales fall; it can also push the government into new legislation that restricts the business.

Give one possible conflict between owners and employees.

Employees press for higher pay, which raises costs and lowers the owners' profit; they may also disagree over working practices.

True or false? Customers are stakeholders of a business but the local community is not.

False. The local community is also a stakeholder — it is affected by jobs, traffic, noise and pollution.

True or false? Every business has the same stakeholder groups, so managers can always be named as a stakeholder.

False. Stakeholders must be appropriate to that business — a very small business may have no managers.

Give two things customers want as stakeholders of a business.

Any two of: value for money (a fair price), good-quality products, a choice of products, good customer service.

Give one thing managers want as stakeholders of a business.

Any one of: higher pay and bonuses; a business that succeeds and grows over the long term; more responsibility and status.