Please enable JavaScript.
Coggle requires JavaScript to display documents.
Stakeholders in a business - Coggle Diagram
Stakeholders in a business
The stakeholders
owners
costumers
suppliers
employees
managers
local community
government & agencies
pressure groups
lenders/banks
roles rights and responsibilities
costumers
role
buy things
give money (revenue
rights
get things that comfort to legal rules on quality
replacements/compensation when the product doesn't work as it should
responsibilities
pay for goods
not to steal
not making false claims on services
suppliers
rights
treated fairly and not to be exploited
paid on time
responsibilities
goods of good quality
supply goods on time
role
supply goods to businesses
employees
rights
employment contract
treated same way as in the employment contract
allowed to join the trade union
responsibilities
honest
meet conditions and requirements of employment contract
cooperate reasonably with management
ethical code of conduct
roles
provide labour and services
local community
rights
consulted about major changes that may affect and change it
responsibilities
cooperate with the businesss with expansions and other things
roles
provide labour the business needs
local government
rights
not to have community's lives badly affected by the business
responsibilities
meet reasonable requests from businesses (public transport & waste disposal)
roles
provide local services and infrastructure for the business
Government
rights
taxes and rules to be followed
responsibilities
treat businesses equally under the law
prevent unfair competition (monopoly)
establish good trading link *allow international trade)
roles
pass laws
economic stability
lenders
rights
repaid on time
interest
responsibilities
provide agreed on finance on certain date
role
provide finance to business
managers
role
control, command and direct resources
rights
contract of employment and sufficient authority to manage roles
responsibilities
report to stakeholders and act legally and ethically
owners/shareholders
role
money
rights
dividends and accurate reports
responsibilities
set targets for managers and give adequate time and effort to meet goals
impact of business decisions to shareholders
The stakeholder concept: there are many other parties involved and interested in business activity than just the owners
build a new factory to expand business
employees
reaction
more potential employees seeking a job
trade unions demand higher pay for more skilled workers
impact
new skill
more job opportunities
local community
impact
more jobs for local resident and increased spending
disruption from traffic and pollution plus now they cant build a new park in that area instead of a business
reaction
refuse planning permission
ban large trucks
boycott or petitions
costumers
impact
greater efficiency may lead to lower prices
worried business focus on quantity not quality
reaction
more products if prices lower for same amount
horizontal integration (takeover)
costumers
impact
economics of scale means lower prices
reduced competition could have opposite effect and higher prices
reaction
consumer boycott
local community
impact
jobs and income may increase
rationalisation means unemployment
reaction
encourage government to ban takeover
employees
impact
more secure and more promotion opportunities
rationalisation
reaction
industrial action
purchase of IT controlled automatic machines
workers
impact
training and promotion opportunities
untrained workers may be made redundant
reaction
industrial action of workers who were fired
local community
reaction
demand retraining for the unskilled and unemployed
impact
local IT suppliers benefit from increased orders
only specialist skilled workers needed so fewer unskilled jobs
costumers
reaction
increased demand if good quality
impact
more efficient and flexible production methods so improved quality
IT reliability can make supplies be delayed
Business accountability to stakeholders and how stakeholder aims impact business decisions
reponsibility to employees
training opportunities
job security
rates above minimum wages
good working conditions
involved in decision making
advantages
employee loyalty
low labor turnover
ease of recruiting good workers
employee suggestions for improving efficiency
improved motivation
more affective communications
responsibilities to local community
secure employment
local suppliers
reducing transport impact
keeping environmental impact minimized
advantages
likely permission to expand
community more likely to accept
responsibilities to suppliers
give Clear guidance on requirements
prompt payment
regular orders
long term contracts
benefits
supplier loyalty
securing reasonable credit terms
preparedness to meet deadlines and special order requests
responsibilities to government
do rules
pay taxes
show accurate stats
advantages
planning permission more likely granted
valuable government contracts
request for subsidies more likely approved
license more likely given
export
responsibility to costumers
quality design and durability as well as costumer service
resonable prices
don't break the law
accurate advertising
not taking advantage of vulnerable costumers
no using high pressure selling tactics
advantages
costumer loyalty
repeat purchases
good publicity
good costumer feedback
conflicts arising from different stakeholder aims
how to deal with it: compromise
factory will close in stages
main site away from a housing estate to protect the local community, even though the new site might be more expensive
24-hour flights at an airport, may only be accepted if local residents are offered sound insulation in their homes
priority questions
What will be the extra cost of meeting the needs of each stakeholder group?
Will bad publicity resulting from the failure to meet the interests of one group lead to lost revenue?
Perhaps lost revenue will be greater than the cost savings of not satisfying this group?
weigh up conflicts and interest and its why managers are payed more
non essential costs reduces profits
objectives of different stakeholders fulfilled to bring more profit in the long term
impacted on stakeholders of changing business objectives
different stakeholders affected in different ways
employee job affected
costumer price affected
owners profit
lenders business relationship
lenders loan repayment
Volkswagen’s objective to be world leader in diesel engines for cars and vans had to be changed when the ‘Dieselgate’ scandal broke. This involved Volkswagen deliberately cheating emissions control regulations.The company is now focused on being the world’s leading manufacturer of electric cars, but this has required massive investment and the closure of some diesel engine factories.
‘Social and environmental change’ is one of The Body Shop’s major objectives but, due to difficult
trading conditions, it was recently forced to focus on cost-cutting by closing some shops to ensure survival and achieve profitability. Making employees redundant goes against The Body Shop’s original objectives.