Business 1.4

internal stakeholders

members of the organization

shareholders (stockholders)

the owners of a limited liability company

What is the difference between stakeholders and shareholders?

A stakeholder is any person or organization that is affected by the business. Shareholders invest money in the company by purchasing its shares.

Explain why employees are often considered to be the key stakeholders in an organization.

Employees produces the goods and services and they communicate with the customers.

external stakeholders

Individuals and organizations not part of the organization but have a direct interest in its activities and performance, e.g. customers, suppliers, pressure groups and the government.

Explain the difference between internal and external stakeholders.

Internal stakeholders are members of the organization. External stakeholders have direct interest or involvement.

How might businesses resolve conflict in the workplace?

Leaders need to look at the type of organization in question, the aims and objectives of the business, and the source and degree of power.

Distinguish between the director and the manager of the company.

Managers are the people who oversee the daily operations of a business. Directors are senior executives who have been elected by the company's shareholders to direct business operations on behalf of their owners.

How might pressure groups affect the success of a business?

Pressure groups have increasingly influenced the decisions and actions of businesses directly or by influencing the government policy.

Outline the sources of stakeholder conflict in a business.

Remuneration (pay and benefit) of the company directors may cause disagreement and some stakeholders have more than one role or set of interests in an organization.

stakeholders

individuals or organizations with a direct interest in the activities and performance of a business

pressure groups

individuals with a common concern who seek to place demands on organizations to act in a particular way or to influence a change in their behavior

conflict

refers to the situation where stakeholders have disagreements on certain matters due to the difference in their opinions