1.5.2 Stakeholder Roles and Objectives
Instruction :
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Go through all instructions and course details thoroughly before starting each lesson or activity.
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Watch the attached video lessons attentively and take clear, organized notes in your notebook.
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Write all answers for the attached worksheets in your notebook. Make sure your work is neat and properly labeled.
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Revise your notes and completed worksheets after each lesson to reinforce understanding.
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If you face any difficulty or have questions, note them down and contact your instructor or course coordinator for guidance.
Click to download the Video Lecture Handout.
Good morning class. Today we’re going to talk about stakeholders – the different groups of people who are connected to a business.
Every business affects people, and people affect the business. Let’s explore this in a simple way with examples you know.
First, what are stakeholders? They are individuals or groups who have an interest in what a business does.
They can be inside the business, like owners, managers, and employees, or outside, like customers, suppliers, government, the local community, and banks.
Let’s look at the main groups and their roles. Owners or shareholders provide capital, take risks, and expect profits.
Managers make decisions and run daily operations. Employees work in return for pay and job benefits.
Customers buy the products and want quality and fair prices. Suppliers provide raw materials and want regular orders and timely payments.
The government regulates the business, collects taxes, and wants low unemployment. The local community is affected by jobs, pollution, and company behaviour.
And banks or lenders provide loans and expect repayments.
Now, each group has its own objectives. Owners want profit and growth. Managers want performance targets met and career rewards.
Employees want job security, good pay, and safe conditions. Customers want good products at fair prices.
Suppliers want long-term contracts and reliable payments. The government wants taxes and compliance with laws.
The local community wants jobs, environmental protection, and responsible businesses. Banks want stability and repayment.
But here’s the challenge – their objectives can conflict. For example, owners may want to keep wages low to increase profits,
but employees want higher pay. Customers want low prices, but owners want to raise prices for profit.
A factory may want to avoid expensive filters to save costs, but the government wants cleaner air.
A business may want to expand, but the local community may fear traffic and pollution.
So, how do businesses deal with these conflicts? They must communicate clearly, balance short-term and long-term goals,
and sometimes negotiate compromises. For instance, agreeing to a small wage increase while improving productivity,
or balancing growth with measures to protect the local environment.
Let’s take a scenario. Imagine a clothing company moving production overseas to save money.
Employees in the home country fear job losses. Owners support the move for lower costs. Customers may care about cheaper clothes,
but some may worry about ethics. The government fears rising unemployment. The local community worries about decline in jobs and economy.
This shows how one decision affects many stakeholders differently.
So class, let’s recap. Stakeholders are groups connected to a business. Internal ones are owners, managers, and employees.
External ones are customers, suppliers, government, community, and banks. Each group has its own objectives,
and these often conflict. Businesses must balance and manage these to succeed responsibly.
By the end of today’s lesson, you should be able to identify stakeholder groups, explain their objectives,
give examples of conflicts, and understand how businesses try to balance these interests.
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