The document discusses stakeholders and their objectives for various groups including shareholders, managers, employees, customers, suppliers, government, and local community. It explains that traditionally companies took a shareholder approach to maximize profits but now recognize benefits to meeting needs of other stakeholders. Specifically, happy employees work harder, loyal customers are more flexible to customer needs, and supportive local communities are less likely to object to company expansion. The task is to explain why companies should consider needs of both internal and external stakeholders in a 6-mark answer.

1. StakeholdersObjectives and Conflicts

2. Stakeholder objectives revisedIdentify the main objectives of the following stakeholders aim for at least 3 objectives per group ShareholdersManagersEmployeesCustomersSuppliersGovernmentLocal community

3. The stakeholder approachTraditionally large businesses took a Shareholder Approach – they were run to further the interests of shareholders and to maximise profitThis “Shareholder Concept” often means that the needs of other stakeholders are ignoredBusinesses have realised that there are benefits in meeting the needs of these stakeholders too

4. The Stakeholder ConceptSteak holderWorkers who are well looked after are more loyal, motivated, flexible and harder workingCustomers will be more loyal to companies who are flexible to their needs

5. Local communities who are taken into consideration will support the company and are less likely to object to expansionTaskExplain why companies should consider the needs of both internal and external stakeholders. This is a K&U question worth 6 marksHow would you go about answering it – design a model structure