Stakeholders and Their Roles

What is meant by the term ‘stakeholder’?

• A person who owns shares in a company

• A person with an interest or concern in a business

• A person who manages a company's finances

• A person who works in the human resources department

What is the main difference between a shareholder and a stakeholder?

• A shareholder owns shares in a company, while a stakeholder has an interest in the company's performance.

• A shareholder is always a stakeholder, but a stakeholder is not always a shareholder.

• A shareholder is concerned with the company's profitability, while a stakeholder is concerned with the company's overall impact.

• All of the above

Identify TWO internal stakeholders.

• Employees and Managers

• Customers and Suppliers

• Government and Media

• Shareholders and Competitors

What perspective does the government, as a stakeholder, think should be a high priority for a business?

• Economic growth

• Environmental sustainability

• Social responsibility

• Technological innovation

What is a potential conflict for employees if a business is run primarily to pay shareholder dividends?

• Employees may receive lower wages or fewer benefits.

• Employees may have more job security.

• Employees may have increased opportunities for advancement.

• Employees may have more influence in decision-making.

How could an organisation’s survival depend on the support of suppliers as stakeholders?

• By ensuring a steady supply of materials and services

• By providing financial investment

• By offering marketing and advertising support

• By managing the organisation's internal operations

Why do employees have a common interest with the board of directors in seeing the business succeed?

• Employees and the board both benefit financially from the company's success.

• Employees and the board have no common interests.

• The board of directors is responsible for employee welfare.

• Employees are not affected by the company's success.

What is the potential conflicting interest between the board of directors deciding to reduce the price of all their products and the expectations of shareholders?

• Increased market share vs. reduced profit margins

• Higher employee satisfaction vs. lower product quality

• Improved brand image vs. increased production costs

• Enhanced customer loyalty vs. decreased innovation

In what circumstances might employees have strong stakeholder power over the business?

• When the business is highly dependent on their skills and expertise

• When there is a high unemployment rate

• When the business has a large number of employees

• When the business is in a highly competitive market

Identify what percentage of shareholders need to vote to remove the chief executive officer of a company.

• 50%

• 66%

• 75%

• 100%