Stakeholders include … Owners <ul><li>who might be - </li></ul><ul><li>owner/managers of small businesses </li></ul><ul><li>shareholders of larger companies </li></ul>
Directors/Managers <ul><li>If the business doesn’t do well, they could be out of a job! </li></ul>Employees <ul><li>As with managers, if the business does badly, there might not be enough to pay their wages </li></ul><ul><li>or they might lose their jobs </li></ul>
Inland Revenue <ul><li>They have to make sure they collect the appropriate taxes </li></ul>Suppliers <ul><li>Want to make sure that the business can pay them for goods supplied … </li></ul><ul><li>And that it doesn’t have a bad reputation for taking a long time pay </li></ul>
Customers <ul><li>Who want to buy good quality products at a reasonable price within a reasonable time </li></ul>
Stakeholders of a large company Suppliers Employees Shareholders Directors/ Managers Inland Revenue Customers
Conflict between stakeholders Each stakeholder in an organisation will have a different reason for wanting it to succeed. Some of these aims compete with one another. Eg The owners and managers of a business will want HIGH PROFITS which may not be wholly compatible with the wishes of the customer who want LOW PRICES.
What impact can a business have on the community? When a business or organisation makes a decision, for example to locate in a particular part of the country, this can have a number of plus points and bad points. SOCIAL COSTS & BENEFITS Social Costs can be described as the NEGATIVE effects of business decisions on the local community. For example: improved roads, better housing and new schools. Social Benefits are the POSITIVE effects of the decision on local community. For example: air/noise pollution, heavy traffic, health problems etc.
ECONOMIC COSTS & BENEFITS Examples of economic costs are the NEGATIVE monetary effects that a local business may have on a community: increased community taxes on property, increased spending on infrastructure. Economic Benefits are the POSITIVE monetary effects local businesses have on a community: increased income for local people as a result of jobs. This will result in a better standard of living. Also, other local firms will benefit from the increased spending power of a local workforce