Business – 1.5 Stakeholders – Business stakeholders | e-Consult
1.5 Stakeholders – Business stakeholders (1 questions)
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Model Answer:
A stakeholder is any individual or group that has an interest in, can affect, or is affected by the activities and performance of a business.
Primary stakeholders are those directly involved in the core activities of the business and whose interests are essential for its survival. Examples include:
- Shareholders – provide capital and expect returns.
- Employees – provide labour and expect wages, job security, and career development.
Secondary stakeholders are not directly essential to the business’s day‑to‑day operations but can influence or be influenced by its actions. Examples include:
- Local community – concerned with environmental impact and employment opportunities.
- Trade unions – represent employee interests and negotiate working conditions.