gcse economics - how we work- stakeholders
Stakeholders are those individuals or groups directly affected by the behaviour of a business.
INTERNAL STAKEHOLDERS (part of the business)
- Employees
- Managers
- Directors
Note - each of the above groups could also be shareholders
EXTERNAL STAKEHOLDERS (outside the business)
- Shareholders (who don't work in the business)
- Local community
- Customers
- Suppliers
- Government
Businesses are taking more consideration of the impact of decisions upon the range of stakeholders. This helps maintain a positive image with all groups.
Sometimes it is difficult to please all stakeholders. For example, a wage increase to employees may cause lower dividends to be paid to shareholders.
AN EXAMPLE OF THE DIFFICULTY IN PLEASING ALL STAKEHOLDERS
Your scholl or college decides to start the school day at 8am and finish at 2pm
- PUPILS May be pleased because they are finishing earlier
- STAFF Some will be annoyed because they can’t take their kids to
school at that time
- BUS COMPANIES May find it difficult to drive at that time
- CANTEEN May be able to serve more breakfasts
- PARENTS May be concerned that their children are at home alone at 2pm
ACTION
A Try to remember the internal stakeholders
B Try to remember the external stakeholders
C Sainsbury’s decides to open its stores 24 hours a day. Which stakeholders will be pleased and which will be unhappy?
D Virgin Rail stops ‘running’ two unprofitable rail routes. Who will be pleased and unhappy?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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