Who are business stakeholders?

Groups of people who have interest or are effected by activities of a business

Internal stakeholders are groups of individuals who have direct interest in the business. Unlike external stakeholders, this group will be directly effected if the business succeeds of fail.

Internal stakeholders consist of owners, shareholders, managers and employees, while external stakeholders consist of creditors, government, sub-contracted employees and the wider community.

CASE STUDY READ: Why is Sir Richard Branson's Virgin Atlantic seeking £900m rescue package?

1. Who is Virgin Atlantic's stakeholders?

2. Which stakeholder groups are effected?

3. How are these stakeholder groups effected?

Comment to discuss...

PAST YEAR QUESTIONS

1. Define ‘stakeholder groups’. (2 marks) Oct/Nov 2021/11

2. What is meant by stakeholder group. (2 marks) Feb/Mar 2018/12 & May/June 2018/11

3. Identify two stakeholder groups and explain each stakeholder groups objectives (4 marks) May/June 2019/13

4. Identify and explain one way the following stakeholder groups might use financial accounts (4 marks) Oct/Nov 2019/13

5. Explain one way each stakeholder groups might use financial information (6 marks) May/June 2020/13

6. Explain one objective for each stakeholder groups (6 marks) May/June 2020/12

7. Identify and explain two stakeholder groups that could be affected by GXC’s decision to invest in new machinery (6 marks) Feb/March 2019/12

8. Explain how two external stakeholder groups might be affected by the take over. (6 marks) Oct/Nov 2020/11

9. Identify and explain two ways in which the bank might use AllPlay’s financial documents. (6 marks) Oct/Nov 2018/11

10. Explain two ways in which local communities might be affected by CLN’s decision to close some of its shops. (6 marks) Oct/Nov 2020/13

11. Identify and explain two ways in which the local community might be affected by Duckett’s relocation decision. (6 marks) Oct/Nov 2018/13

12. Explain one way each stakeholder’s objectives might conflict with BKH’s objective to increase profit. (6 marks) May/June 2021/11

13. Do you think the shareholders are the most important stakeholder group to the success of a limited company? Justify your answer. (6 marks) May/June 2021/12

14. Outline one possible objective for each of the following stakeholder groups of CXN. (4 marks) Feb/Mar 2022/12

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