(b) Briefly discuss how stakeholder groups (other than management and employees) may be re

Question

(b) Briefly discuss how stakeholder groups (other than management and employees) may be rewarded for ‘good’

performance. (4 marks)

Answer 1

正确答案：
(b) Good performance should result in improved profitability and therefore other stakeholder groups may be rewarded for ‘good
performance’ as follows:
– Shareholders may receive increased returns on equity in the form. of increased dividends and /or capital growth.
– Customers may benefit from improved quality of products and services, and possibly lower prices.
– Suppliers may benefit from increased volumes of purchases.
– Government will benefit from increased amounts of taxation.