Stakeholders
Overview
A cement works announces that it will run a night shift. The owner is delighted, because the machinery will earn money for sixteen hours a day instead of eight. Forty people who were unemployed last month are delighted too. The supplier who delivers limestone doubles his orders. And two hundred metres away, a family who have to be up for school at six discover that the crusher runs until one in the morning.
Every one of those people has a stake in that single decision, and no two of them want the same outcome from it. In this lesson you will learn who a business's stakeholders are, what each of them wants, how business activity affects them, and how they push back. Most importantly you will learn to handle stakeholder conflict, which is the part the extended questions are actually built on: not who is affected, but who gains at whose expense, and what a business can reasonably do about it.
Objectives
- Main stakeholders of businesses.
- Objectives of stakeholders.
- Impact of business activity on stakeholders.
- Impact and influence stakeholders have on businesses.
Mind map
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Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Stakeholders. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- Which one of the following stakeholders would have an objective of maximising the pay received by workers? A. Customers B. Employees C. Shareholders D. Suppliers Answer: B
- Which one of the following is a stakeholder but not a shareholder of a company? A. An investor who has bought 500 shares B. A director who owns part of the business C. A family living next to the company's factory D. A founder who kept half the shares Answer: C
- A business decides to pay its suppliers after 90 days instead of 30 days. Which stakeholder is most likely to be harmed? A. Customers B. Employees C. Shareholders D. Suppliers Answer: D
- Which one of the following gives the government influence over a business? A. It can buy the business's products B. It can set taxes, laws and licences the business must obey C. It can vote at the annual meeting of shareholders D. It can refuse to deliver raw materials Answer: B
- Which one of the following best describes stakeholder conflict? A. Two businesses competing for the same customers B. A situation where meeting one group's objective means failing to meet another's C. A disagreement between two shareholders about the share price D. A government fining a business for breaking the law Answer: B
Work through these questions in the app
Work through these questions in the app
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