Who are legitimate stakeholders?

Who are legitimate stakeholders?

Robert Allen Phillips distinguishes between normatively legitimate stakeholders (those to whom an organization holds a moral obligation) and derivatively legitimate stakeholders (those whose stakeholder status is derived from their ability to affect the organization or its normatively legitimate stakeholders).

Which stakeholder is most interested in tax liabilities of the firm?

Introduction to Accounting

Which stakeholder group… would be most interested in
(Government and other regulators) (a) the VAT and other tax liabilities of the firm.
(Management) (b) the potential for pay awards and bonus deals
(Social responsibility groups) (c) the ethical or environmental activities of the firm

How do you manage internal stakeholders?

How to Deal with Internal Stakeholders

  1. Develop great relations with your internal stakeholders.
  2. Establish clear roles.
  3. Make the process very clear.
  4. Develop a ticketing and project system.
  5. Lead the prioritization, but involve stakeholders.
  6. Train stakeholders.
  7. Make your schedule and reports available.

Which stakeholder group is more interested in?

Solution : (i) Social responsibility group (such as environmental protection group). (ii) Potential investors and long term creditors.

How do you balance the needs of stakeholders?

How to balance stakeholder requirements?

  1. Be sure that stakeholder requirements can be met in the objectives.
  2. Prioritize requirements.
  3. Resolve conflicts between stakeholder requirements.
  4. Let the customer requirements take precedence.
  5. Ask for Management Support.

Who is the most important internal stakeholder?

Shareholders/owners are the most important stakeholders as they control the business. If they are unhappy than they can sack its directors or managers, or even sell the business to someone else. No business can ignore its customers. If it can’t sell its products, it won’t make a profit and will go bankrupt.

Which of the following will increase owner’s equity?

The main accounts that influence owner’s equity include revenues, gains, expenses, and losses. Owner’s equity will increase if you have revenues and gains. Owner’s equity decreases if you have expenses and losses. If your liabilities become greater than your assets, you will have a negative owner’s equity.

What is a stakeholder in conservation?

In environmental and conservation planning, stakeholders typically include government representatives, businesses, scientists, landowners, and local users of natural resources.

How do you define stakeholders?

A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers.

What is the purpose of stakeholder engagement?

Stakeholder engagement, from the outset, helps build involvement and a sense of continuation to a new future. Allow adequate time and planning to include all relevant parties and to allow them to discuss, understand and internalise each project milestone or step in the process.

Which two reports on internal control are sometimes combined?

Thus, two reports on internal control, one by management and one by a public accounting firm, are included in the annual report. In some situations, these may be combined into a single report on internal control.

Which of the following is not a quick asset?

Inventories and prepaid expenses are not quick assets because they can be difficult to convert to cash, and deep discounts are sometimes needed to do so.

Are employees internal stakeholders?

Internal stakeholders are entities within a business (e.g., employees, managers, the board of directors, investors).

What is the purpose of profitability ratios?

Profitability ratios assess a company’s ability to earn profits from its sales or operations, balance sheet assets, or shareholders’ equity. Profitability ratios indicate how efficiently a company generates profit and value for shareholders.

What is Times Interest Earned Ratio quizlet?

Times interest earned is computed by dividing a company’s net income before interest expense and income taxes by the amount of interest expense. The times interest earned ratio reflects a company’s ability to pay interest obligations.

What are the needs of stakeholders?

Stakeholder needs and requirementsStakeholder needs and requirements represent the views of those at the business or enterprise operations level—that is, of users, acquirers, customers, and other stakeholders as they relate to the problem (or opportunity), as a set of requirements for a solution that can provide the …

What are the three steps of stakeholder analysis?

Whatever approach is used, there are three essential steps in stakeholder analysis: 1) Identifying the key stakeholders and their interests (positive or negative) in the project; 2) Assessing the influence of, importance of, and level of impact upon each stakeholder; and 3) Identifying how best to engage stakeholders.

Which stakeholder would be most interested in the liquidity of a company?

Short-term creditors such as banks and financial institutions are primarily concerned with whether a company will be able to repay short-term borrowings such as loans and notes. As such, they are most interested in evaluating a company’s ability to convert assets into cash, which is called liquidity.

How do I calculate the current ratio?

Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.

What do internal stakeholders expect from a business?

Internal stakeholders are groups or people who work directly within the business, such as managers, employees, and owners. Managers and employees want to earn high wages and keep their jobs, so they have a vested interest in the financial health and success of the business.

How do you build relationships with internal and external stakeholders?

How to Build Good Relationships With Project Stakeholders

  1. Understand who the stakeholders are.
  2. Pinpoint stakeholders with high levels of power and influence.
  3. Engage in a one-to-one conversation.
  4. Seek to understand their world.
  5. Communicate with clarity and honesty.
  6. Continuously demonstrate your competence.

Why is a stakeholder analysis important?

Performing stakeholder analysis is a great way to deliver a high-quality product. It helps in understanding various stakeholders of the product and to what extent they can affect the project. Stakeholder analysis uncovers and removes multiple barriers in understanding the project’s progression, stakeholder analysis.

Who are the main stakeholders in a charity?

Some common examples of stakeholders are:

  • Employees.
  • Members of the organisation.
  • Investors/grant makers/lenders.
  • Customers/service users and families.
  • The local community.
  • Local voluntary organisations.
  • The local authority.
  • Beneficiaries.

What’s the importance of stakeholders?

Key stakeholders can provide requirements or constraints based on information from their industry that will be important to have when understanding project constraints and risks. The more you engage and involve stakeholders, the more you will reduce and uncover risks on your project.