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ITB Chapter 1 (Part 3)

The document discusses stakeholder theory and defines stakeholders as any group that can affect or be affected by a company's actions. It provides examples of key stakeholder groups including customers, employees, shareholders, suppliers, governments, and communities. The conclusion restates that a business aims to produce and sell goods/services for profit while satisfying societal needs and defining profit.

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Azim Hamid
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83 views7 pages

ITB Chapter 1 (Part 3)

The document discusses stakeholder theory and defines stakeholders as any group that can affect or be affected by a company's actions. It provides examples of key stakeholder groups including customers, employees, shareholders, suppliers, governments, and communities. The conclusion restates that a business aims to produce and sell goods/services for profit while satisfying societal needs and defining profit.

Uploaded by

Azim Hamid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FOUNDATION IN ARTS

INTRODUCTION TO
BUSINESS

INTRODUCTION TO BUSINESS
(CHAPTER 1, PART 3)
INTRODUCTION TO BUSINESS
STAKEHOLDER THEORY

• The theory that an organization can enhance


the interests of its stockholders without
damaging the interests of its wider
stakeholders.

• Example: Google’s “Don’t Be Evil”


INTRODUCTION TO BUSINESS
SHAREHOLDERS OR STOCKHOLDERS

 Shareholder is a person who actually owns stock/share


in a company.
 Stock/Share is a piece of ownership in a company
 By owning stock, shareholders actually own a piece of
the company, however small the piece might be.
 Eg: Malaysia Airlines
INTRODUCTION TO BUSINESS: STAKEHOLDERS

 Are all the people who stand to gain


or lose from the policies and
activities of a business

 Include customers, employees,


stockholders, suppliers, bankers,
customers, governments, competitors

 A poor relationship with stakeholders


may disrupt production of business
operations
STAKEHOLDERS

• Governmen
tal Agencies
• Custom
• Bank • NGO
ers
ers ’s • May • Main
• Political • Financial promote or
source of
Attitudes. Institutions tarnish
revenue.
reputation.

• May help or • May


cooperate
• Holds most
• Administrat hinder
for CSR of the
ive Policies source of
activities. power.
capital

• 06/03/2022
STAKEHOLDERS
• Competitors/ Shareholders/
Rivals
• • Suppliers • Employe
Stockholders es
• May take away
market share • Primary source of • Provides Raw • The most
(customers). initial capital and Partially important
• May also Finished Goods. Business
cooperate Resource.

• Provides • May help


other or hinder
important business
services. operations

• 06/03/2022
CONCLUSION/SUMMARY

1. The organized effort of individuals to produce


and sell, for profit, the products and services
that satisfy society’s needs

2. Profit = What remains after all business expenses


have been deducted from sales revenue

3. Functions: Provides Goods & Services,


Employment, Contribute to the Economy, Protect
the Environment.

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