1.1.3 Stakeholders and their Objectives Flashcards Preview

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Flashcards in 1.1.3 Stakeholders and their Objectives Deck (14)
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1

Economics Agents

a person, company, or organisation that has an influence on the economy by producing, buying, or selling.

2

Stakeholders

Stakeholders are groups or individuals that are affected by and/or have an interest in the operations and objectives of the business.

3

Shareholders

an owner of shares in a company.

4

Suppliers

a person or organisation that provides something needed such as a product or service.

5

Creditors

People or organisations that are owed money by a business.

6

CSR (corporate social responsibility)

is when companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a voluntary basis.

7

Reasons for CSR

-Altruism – being a good citizen
-Contracting benefits – e.g. helps recruit, motivate and retain employees
-Customer-related motivation: attract customers; brand positioning
-Lower production costs (packaging, energy usage)
-Risk management – address potential legal or regulatory action

8

Tax evasion

the illegal non-payment or underpayment of tax.

9

Transnational or Multinational corporations (TNCs or MNCs)

these are large businesses that operate in a number of countries. They often separate their production between various locations, or have their different divisions – Head Office and Administration, Research and Development, Production, Assembly, Sales – separated around a continent or the globe.

10

Reasons for TNCs or MNCs

-Global expansion of a major product with worldwide markets, such as Coca Cola
-Take-over of foreign competitor firms, such as BMW
-Merger with foreign firms into one large international company, such as GlaxoSmithKline
-Vertical integration: acquiring the companies that sell you materials and components, and/or that you sell on to for manufacture, assembly or sales.
-Horizontal integration: acquiring the companies that make similar components that, along with yours, will go into the final product.

11

Zero- hours contract

is a type of contract between an employer and a worker, where the employer is not obliged to provide any minimum working hours, while the worker is not obliged to accept any work offered.

12

Internal Stakeholder

- Directors
- Managers
- Employees

13

Connected Stakeholder

- Shareholders
- Customers
- Suppliers
- Advisers
- Consultants
- Competitors

14

External Stakeholder

- Government
- Local community
- Pressure groups
- Media