AS Business Studies STAKEHOLDERS

Who is the most important here? Stakeholders Someone who has an INTEREST in a businesses activities (can be affected by it’s decisions) Who are they? Customers Owners Employees AND their families Local communities Government and Gov’t Agencies Pressure Groups Shareholders Who is the most important here? Who does CSR cover?

Stakeholders Stakeholders can have a POSITIVE or NEGATIVE affect on a business Stakeholders can be affected positively or negatively by the decisions a business makes How much INFLUENCE they have will depend on how much their pressure can make a business change it’s decisions All stakeholders will have a Role, a Right and a Responsibility to the business (refer to handout!)

Scenario ... Consider how these might affect: Employees, Community, Customers Large expansion of a business by building a new head office Takeover of a completing firm (what type of merger is this?) Significant application of IT into production methods

Responsibilities to Stakeholders Responsibilities to Customers ... What responsibilities must a company take? Quality (you get what you pay for!) Price Design Durability Customer Service Consumer Protection and Advertising responsibilities! What are the benefits that can come with providing all of these?

Responsibilities to Stakeholders Responsibilities to Suppliers ... What responsibilities must a company take? Clarity on Quality required – you can only sell what is provided! Reliability – delivery specified clearly Payment to the suppliers on time Place regular orders (long term contracts?) What are the benefits that can come with providing all of these?

Responsibilities to Stakeholders Responsibilities to Employees... What responsibilities must a company take? Abide by the law in your country Training Promotion opportunities Job Security Fair pay for the job being done Good working conditions Involvement in decision making What are the benefits that can come with providing all of these?

Responsibilities to Stakeholders Responsibilities to Local Community... What responsibilities must a company take? Employment opportunities locally Use local suppliers (local income) Consider environmental impact Consider transportation impact on community What are the benefits that can come with providing all of these?

Responsibilities to Stakeholders Responsibilities to Government... What responsibilities must a company take? Abide by the law in your country Pay your tax on time  Seek Export markets What are the benefits that can come with providing all of these? ACTIVITY 5.2 Pg 75