IBDP Business Unit 1.4 Key Terms

Refers to situations where stakeholders have disputes or differences regarding certain issues or matters. This can lead to arguments and tension between the various stakeholder groups.

• Conflict

• Confusion

• Contempt

• Clarity

The clients of a business. As a key external stakeholder group, they seek to have value for money, such as competitive prices and good quality products.

• Government

• Customers

• Owners

• Managers

Senior executives who have been elected by the company's shareholders to address business activities on behalf of the owners.

• Owners

• Shareholders

• Directors

• Managers

The staff of an organisation. They have a stake (an interest or involvement) in the organisation they work for.

• Workers

• Employers

• Employees

• Owners

Individuals and organisations not part of the business but have a direct interest in its activities and performance. Examples include customers, suppliers and the government.

• Owners

• Employees

• Internal stakeholders

• External stakeholders

The financial institutions and individual investors who provide sources of finance for an organisation. They are interested in the organisation's ability to generate profits and to repay debts.

• Financiers

• Owners

• External stakeholders

• Internal stakeholders

The ruling authority within a state or country. As a external stakeholder group, they are interested in businesses complying with the law with regards to the conduct of business activities.

• Employers

• Owners

• Government

• Employees

Members of an organization, namely the employees, managers, directors and shareholders of a business.

• Internal stakeholders

• External stakeholders

• Customers

• Government

The general public and local businesses that have a direct interest in the activities of an organisation, namely to create jobs and to conduct business activities in a socially responsible way.

• External stakeholders

• Local community

• Employees

• Government

The internal group of stakeholders responsible for overseeing the daily operation of the business.

• Directors

• Managers

• Employers

• Customers