1.5.1 Business stakeholders
Who business stakeholders are and their different objectives:
● shareholders (owners), employees, customers, managers, suppliers, local community, pressure groups, the government.
Stakeholders and businesses:
● how stakeholders are affected by business activity
● how stakeholders impact business activity
● possible conflicts between stakeholder groups.
● shareholders (owners), employees, customers, managers, suppliers, local community, pressure groups, the government.
Stakeholders and businesses:
● how stakeholders are affected by business activity
● how stakeholders impact business activity
● possible conflicts between stakeholder groups.
Stakeholder Theory
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Watch the following videos and read the notes on BBC bitesize.
Complete the table below the videos and the MCQ on BBC bitesize. Tutor2u quiz Stakeholder Conflicts
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Example exam question:
Assess the impact of Stakeholder at Sports Direct. (6 marks) (Hint: you can look at how the behavior has both positives & negative effects) Sports Direct founder questioned over exploitation allegations
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Class Notes
Complete a table which identifies how stakeholders are affected by business activity & how stakeholders impact business activity.
Stakeholder How they're affected How they can impact the business
shareholders (owners), Profits - impact financial rewards (drawings/dividends) Strategic direction / Financial support
employees, Wages, working conditions, pension, nature of the work, holiday, contract Customer service, productivity, absenteeism, leave
customers,
managers,
suppliers,
local community,
pressure groups,
the government.
Stakeholder How they're affected How they can impact the business
shareholders (owners), Profits - impact financial rewards (drawings/dividends) Strategic direction / Financial support
employees, Wages, working conditions, pension, nature of the work, holiday, contract Customer service, productivity, absenteeism, leave
customers,
managers,
suppliers,
local community,
pressure groups,
the government.
Extension Activity:
Who are Shenfield's stakeholders and why are each important to keep happy?
Why might it be hard to satisfy all stakeholders at once however?
Try to rank the stakeholders of a business in priority of who is most important. You'll need to explain why you have placed them where you have.
The following examples may help you to consider how they are affected by a business and how they can influence the business.
Who are Shenfield's stakeholders and why are each important to keep happy?
Why might it be hard to satisfy all stakeholders at once however?
Try to rank the stakeholders of a business in priority of who is most important. You'll need to explain why you have placed them where you have.
The following examples may help you to consider how they are affected by a business and how they can influence the business.
Stakeholder ConflictWhich stakeholders do you think might have objectives which lead to conflict?
Why would a start up business risk higher levels of stakeholder conflict? How might the objective of the business influence stakeholder conflict? Why is it important to resolve them? How can an owner resolve stakeholder conflict? Is it possible to keep all stakeholders happy? What would it depend upon? |
Doughty Centre 50 Lessons on Corporate Responsibility and Sustainability - Jamie Mitchell
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