AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Stakeholders: Main stakeholders of businesses
A stakeholder is any individual or group affected by, or with an interest in, a business's activities and decisions.
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 1 of 7
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
A stakeholder is any individual or group affected by, or with an interest in, a business's activities and decisions. The main stakeholders include owners and shareholders, employees, customers, suppliers, the local community, and the government. Owners and shareholders seek returns and business growth; employees seek secure employment, fair pay and good working conditions; customers want quality products at fair prices; suppliers want reliable orders and prompt payment; the local community may be concerned about jobs, environmental impact and local disruption; and the government is interested in tax revenue, employment and compliance with the law. Stakeholders can influence business behaviour, and their interests may conflict, so businesses must consider them when making decisions.
What earns the marks
- Identifies owners and shareholders as stakeholders who provide finance and expect a return on investment.
- Explains that employees are stakeholders because they depend on the business for income, job security and working conditions.
- Describes customers as stakeholders who purchase goods or services and expect value, quality and reliability.
- Outlines that suppliers are stakeholders who provide resources and expect regular orders and payment.
- Recognises the local community as a stakeholder affected by employment, environmental impact and business activity.
- States that the government is a stakeholder through taxation, employment levels and legal regulation.
Common mistakes and how to put them right
Listing only shareholders and employees.
Put it right: Include a wider range such as customers, suppliers, local community and government.
Confusing stakeholders with shareholders.
Put it right: Shareholders are owners, while stakeholders include anyone affected by the business.
Assuming all stakeholders have the same goals.
Put it right: Different stakeholders often have conflicting objectives.
Exam tips
- Use specific stakeholder names and link each to a clear interest in the business.
- When asked to identify, give the stakeholder and a brief reason for their interest.
- Apply stakeholders to the context of the business in the case study to gain application marks.
Try the lesson
The start of the Stakeholders: Main stakeholders of businesses lesson, made from checked teaching notes for this specification point.
Have a go first
Which group is a main stakeholder of a business because it provides the finance used to set up and run the business?
Listen
A stakeholder is any individual or group affected by, or with an interest in, a business's activities and decisions. The main stakeholders include owners and shareholders, employees, customers, suppliers, the local community, and the government. Owners and shareholders seek returns and business growth; employees seek secure employment, fair pay and good working conditions; customers want quality products at fair prices; suppliers want reliable orders and prompt payment; the local community may be concerned about jobs, environmental impact and local disruption; and the government is interested in tax revenue, employment and compliance with the law. Stakeholders can influence business behaviour, and their interests may conflict, so businesses must consider them when making decisions. A strong answer earns marks for these points. Identifies owners and shareholders as stakeholders who provide finance and expect a return on investment. Explains that employees are stakeholders because they depend on the business for income, job security and working conditions. Describes customers as stakeholders who purchase goods or services and expect value, quality and reliability. Outlines that suppliers are stakeholders who provide resources and expect regular orders and payment. A common slip: Listing only shareholders and employees. Instead, include a wider range such as customers, suppliers, local community and government. Exam tip: Use specific stakeholder names and link each to a clear interest in the business.
See it
Key words
Say what each word means before you turn the card.
Stakeholder
Try answering aloud or in your head before turning the card.
Stakeholder interests
Try answering aloud or in your head before turning the card.
Conflict between stakeholders
Try answering aloud or in your head before turning the card.
Business decision making
Try answering aloud or in your head before turning the card.
See every definition
- Stakeholder
- Any individual or group affected by, or with an interest in, a business's activities and decisions.
- Stakeholder interests
- The concerns of each group, such as owners seeking returns and growth, employees seeking secure employment and fair pay, and customers wanting quality products at fair prices.
- Conflict between stakeholders
- Arises because different stakeholders often have conflicting objectives, so businesses must consider them when making decisions.
- Business decision making
- Must take stakeholders into account because stakeholders can influence business behaviour and their interests may conflict.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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