SQA Higher Business Practice Exam

A stakeholder in a business encompasses a broad range of individuals and groups that have an interest in the organization's operations and success. This includes not only the owners but also employees, customers, suppliers, community members, and even the government. Each stakeholder group can influence or be influenced by the company's actions.

For example, employees are stakeholders because they rely on the business for their livelihood. Customers are stakeholders due to their interest in the products or services offered. Suppliers and vendors have a stake in the company's success as well since their business may depend on the company’s health and growth. Community members become stakeholders because the business's operations can impact the local economy and environment.

By recognizing that stakeholders are not limited to owners or employees, the business can better manage relationships with various parties that are vital to its sustainability and growth. This understanding helps the organization to develop strategies that align the interests of different stakeholder groups, ensuring broader support and cooperation.