Business · 5th Year · People in Business · 2.º Período

Stakeholders and their Relationships

Identify the various stakeholders in a business and analyse their competing interests. Students will explore cooperative and competitive relationships within the commercial environment.

TL;DR:This topic introduces the various individuals and groups that have an interest in how a business is run. Students identify internal stakeholders like employees and owners, as well as external stakeholders like customers, suppliers, the local community, and the government. The focus is on the dynamic nature of these relationships and how they can be either cooperative or competitive.

• NCCA Curriculum Specifications
• LC Business Unit 1.1: People in Business
• LC Business Unit 1.2: Interest Groups

About This Topic

This topic introduces the various individuals and groups that have an interest in how a business is run. Students identify internal stakeholders like employees and owners, as well as external stakeholders like customers, suppliers, the local community, and the government. The focus is on the dynamic nature of these relationships and how they can be either cooperative or competitive.

Understanding stakeholder conflict is a core element of the Leaving Cert Business specification. Students must evaluate how a decision that benefits one group (e.g., increasing dividends for shareholders) might disadvantage another (e.g., reducing wages for employees). This topic is best explored through role-play and simulations where students must negotiate competing demands to find a sustainable solution.

Key Questions

1. Who are the key stakeholders in a business?
2. How can stakeholder interests conflict?
3. What is the difference between a cooperative and competitive relationship?

Watch Out for These Misconceptions

Common Misconception

Stakeholders and Shareholders are the same thing.

What to Teach Instead

A shareholder is an owner (a type of stakeholder), but a stakeholder is anyone affected by the business. Using a Venn diagram activity helps students see that while all shareholders are stakeholders, not all stakeholders own shares.

Common Misconception

Stakeholder relationships are always competitive.

What to Teach Instead

Many relationships are cooperative, where both parties work together for mutual benefit (win-win). Active learning scenarios where students must find a 'win-win' solution help reinforce the value of cooperation in business.

Active Learning Ideas

Role Play

The Stakeholder Meeting

A local factory plans to expand, which will create jobs but increase noise pollution. Students take on roles as the CEO, a local resident, a trade union rep, and an environmental officer to negotiate a compromise that satisfies as many parties as possible.

45 min·Small Groups

Think-Pair-Share

Cooperative vs. Competitive

Students are given a list of stakeholder pairs (e.g., Manager and Employee). They must first think of a way they could cooperate, then a way they might compete, before sharing their best examples with a partner and then the class.

20 min·Pairs

Gallery Walk

Stakeholder Mapping

Place logos of well-known Irish companies (e.g., Ryanair, SuperValu) on large posters. Groups move from poster to poster, adding specific stakeholders for each and noting a potential conflict that company might face.

30 min·Small Groups

Frequently Asked Questions

What are the most common stakeholder conflicts in Irish business?

Common conflicts include employees seeking higher wages vs. management wanting to cut costs, or local communities opposing a new development that the company claims will bring jobs. Environmental concerns vs. industrial profit is also a frequent point of tension in the Irish media.

How do I explain the difference between a 'Cooperative' and 'Competitive' relationship?

A cooperative relationship is a 'win-win' where parties work together (e.g., a producer and retailer co-branding a product). A competitive relationship is 'win-lose' where parties battle for the same advantage (e.g., two rival supermarkets fighting for the same customers). Use local examples like Centra vs. Spar to illustrate competition.

How can active learning help students understand stakeholder interests?

By stepping into the shoes of a stakeholder through role-play, students feel the pressure of that person's priorities. It is one thing to read that 'residents care about noise,' but another to argue that point in a mock town hall meeting. This builds empathy and a deeper understanding of why business decisions are so complex.

Which stakeholders are considered 'Internal'?

Internal stakeholders are those directly involved in the daily operations or ownership of the business. This typically includes the entrepreneur/owners, the management team, and the employees. All other groups, like customers, banks, and the government, are considered external.