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| Question | Answer |
| STAKEHOLDER CONCEPT | Stakeholder: all groups within or outside the organisation that affect or are affected by the business's actions or in-actions They have interest( hold a stake) in the company's operation |
| MAJOR STAKEHOLDERS (9) | 1. Shareholder's & Owners 2. Employees 3. Creditors 4. Customers 5. Suppliers 6. Competitors 7. Community 8. Public Interest Groups & Media 9. Governement |
| SHAREHOLDERS & OWNERS | -ind or institutions that legally hold the shares in a public or private org -Mngt responsibility to provide shareholders a healthy return on investments -When managers trade insider info that is unavail to others, they undermine shareholders interest (cant be fined/jailed) |
| EMPLOYEES | -indi that is hired by the of to perform specific duties which are packaged into a job Employers must meet certain minimum health and safety requirements for employees. Hazard-free, general health and safety of employees |
| CUSTOMERS | -indi or businesses that buy goods and services -expect G&S to be avail at a fair price to meet their needs -demand that products are reliable, durable and of high quality & readily used |
| SUPPLIERS | -indi or businesses that provide G&S for the agreed compensation -survival depends on org that uses their materials. Regularities of orders which are placed, promptness of payment, stability and soundness of org are impt to them -org also have a responsibility to be prompt in payment and maintain stability of org |
| CREDITORS | -indi or institution to which $ is owed -interested in the business liquidity and financial health. Rely on regular payment and all debts to be paid. Profit>social responsibility |
| COMPETITORS | -companies in the same/similar industry which offer a similar product/service -performance of org. one com's innovation may expand opportunities for all players -may also cooperate in responding to political or social issues |
| PUBLIC INTEREST GROUP(PIG) | -PIG are non-profit, usually voluntary org whose mem have a common cause for which they seek to influence public policy -May not be directly affected by sth the org dos, but represent the interest of other stakeholders (EG: general public or workers) |
| MEDIA | -communication channels through which news and info are disseminated -keep public informed on issues relevant to its health, welfare, safety |
| GOVERNMENT | -a body of ppl that sets and administers public policy, and exercises political power through laws within a country -depend on org for tax revenue and economic development -has a responsibility to regulate biz and ensure environment is not spoiled |
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