Stakeholder Mapping

Question 1

What is a Stakeholder?

Answer 1

Any individual or organisation who has a vested interest in the activities and decision making of a business

Question 2

State seven stakeholders

Answer 2

• Owners / shareholders
• Employees
• Customers
• Government
• Creditors
• Suppliers
• Society

Question 3

Why may shareholders / owners be interested in a business?

Answer 3

• Return on investments

- High dividends / profits

Question 4

Why may employees be interested in a business?

Answer 4

• Financial incentives
• Job security
• Working conditions
• Promotion opportunities
• Job satisfaction / motivation

Question 5

Why may customers be interested in a business?

Answer 5

• Value for money
• Product quality
• Customer service

Question 6

Why may suppliers be interested in a business?

Answer 6

• Financial stability of the firm: can the business pay it’s bills?
• Continued and profitable trade with the business

Question 7

Why may creditors be interested in a business?

Answer 7

• Can the business repay loans?

Question 8

Why may governments be interested in a business?

Answer 8

• The correct collection and payment of taxes
• Job opportunities
• Compliance with business legislation

Question 9

Why may society be interested in a business?

Answer 9

• Success of the business (job creations)

- Compliance with local laws and regulations (noise, pollution)

Question 10

What does a high level of stakeholder power and a high level of stakeholder interest mean?

Answer 10

The business need to take notice of them and should engage with them directly

Question 11

What does a high level of stakeholder power and a low level of stakeholder interest mean?

Answer 11

The business need to keep them satisfied

Question 12

What does a low level of stakeholder power and a high level of stakeholder interest mean?

Answer 12

The business should regularly communicate with them

Question 13

What does a low level of stakeholder power and a low level of stakeholder interest mean?

Answer 13

The business should only communicate when necessary