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5) STAKEHOLDERS IN A BUSINESS, VS, KC :star: Customer focus Strategy -…
5) STAKEHOLDERS IN A BUSINESS
Shareholder concept: the view that businesses should only act in the interest of its owners
Stakeholder concept: the view that businesses have responsibilities to a wide range of groups, not just shareholders
Responsibilities
to
stakeholders
Customers
: :check: quality, design, durability, customer service
:check: attractive goods at reasonable prices
:check: obey law of consumer protection and accurate advertising
:red_cross: high-pressure selling tactics
:red_cross: avoid taking advantage
Suppliers
: :check: give clear guidance on what is required
:check: pay promptly, place regular orders, long-term contracts
Employees
: :check: obey law of employee welfare
:check: training opportunities, job security, pay over min. wage, good working conditions, involvement in decision-making
Local community
: :check: secure employment (less local fear of job loss), spend on local supplies, reduce transport and environmental impact of business activity
Gov
: :check: meet legal responsibilities (pay tax on time, complete gov statistics and other forms accurately
:check: seek export markets
Stakeholders: people/groups who can be affected by - therefore have an interest in - any action by an organisation
Employees + their families
Local communities
Suppliers
Gov + gov agencies
Special interest groups
Customers
Lenders
Impact of business activities on stakeholders
negative and positive
Roles, rights and responsibilities
of
stakeholders
CSR: concept that accepts that businesses should consider the interests of society in their decisions and activities, beyond legal obligations
Evaluation
Support
Criticism
Benefits of accepting responsibilities
Conflicts arising from different stakeholder objectives
Impact on stakeholders of changing business objectives
VS
KC :star:
Customer focus
Strategy