- Direct interest and is affected by business activities
- Internal and external stakeholders
- i.e. with Uber
- Internal: app developers, drivers,
- External: customers, restaurants, competition (suppliers, restaurants)
- Uber drivers aren’t employees, they are self-contractors
- They have an interest in the company
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- MANAGERS AND DIRECTORS
o Oversee business operations
o Profits, job security, long term success of the business
- Shareholders are a powerful stakeholder
o They have voting rights in business operations
- Shareholders have two motives 1 dividends and 2 capital gain from the value of shares
- External shareholders
o Do not have a part of the business (so not employees)
o But are interested in the company. This includes customers, suppliers, government, and competition
- Customers are important! It’s how the business makes money. Companies appease customer stakeholders by making good products
- Suppliers:
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- Financiers
o Provides funding for company (i.e. banks)
o They make money by charging interest