The document discusses stakeholders of a business. Stakeholders include owners, directors/managers, employees, inland revenue, suppliers, and customers. Each stakeholder has a different interest in the success of the business. For example, owners want high profits while customers want low prices. The document also discusses how businesses can impact the local community through social and economic costs and benefits such as job creation, infrastructure spending, pollution, and property taxes.

1. Stakeholders

2. Who has an interest in the way a business is run? Many people can have an interest ...

3. These people are called Stakeholders

8. Stakeholders of a large company Suppliers Employees Shareholders Directors/ Managers Inland Revenue Customers

9. 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.

10. 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.

11. 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