The Customers, Employees, Stockholders, Suppliers, Creditors, And Others Who Stand To Gain Or Lose By The Policies And Activities Of A Business Represent The Firm's?


1 Answers

Shane Richardson Profile
The answer you are looking for is stakeholders. The term stakeholders really represents anyone who has an invested interest in that company.

  • Customers
    The customers may be very loyal to that store or brand and even have some kind of loyalty card or scheme. Therefore if the company does well then they may well get some kind of loyalty bonus or voucher, however if the business goes down hill and collapses then they will lose out and will have to shop elsewhere.
  • Employees
    Employees obviously have an invested interest in how well the business
    is doing as their jobs depend on this. However, many businesses keep
    quiet about any problems they are having and so sometimes employees
    don't know anymore than the customer does.
  • Suppliers
    Suppliers also have a lot of interest in how the business is doing and the success of the business certainly affects them. If the business is doing excellent trade then they are likely to increase their orders and so the supplier massively benefits from this. However if the business is slowing down then it is likely that orders will also, and so again this directly affects the supplier.
  • Creditors and Shareholders
    Creditors and shareholders actually invest their own money into a company and so of course they are very much affected by the business' performance. They invest with the intention of making money from a company on the rise, thus need to be firmly kept in the loop regarding the business i.e. How it is doing, financial forecasts etc.

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