Managing Stakeholder Relationships (AQA A Level Business) : Revision Note

In 2020, British Airways announced plans to cut 12,000 jobs and reduce pay and benefits for remaining staff due to the impact of the COVID-19 pandemic on the airline industry

The cuts were met with protests and legal challenges from unions and employees, who argued that the airline was unfairly targeting its workers

In 2019, Extinction Rebellion, a climate change activist group, organised protests across the UK to demand government action on climate change

The group had the support of many members of the public, but some politicians criticised the protests for disrupting public order and causing economic damage

 In 2019, plans to build a new high-speed rail line, HS2, faced opposition from residents affected by the proposed route, who argued that the project would damage the environment, disrupt communities, and be too expensive

The project also faced opposition from environmental groups, who argued that the resources could be better spent on other infrastructure projects

In 2022 postal workers were engaged in strike action against their employer, Royal Mail

They objected to a range of changes being made to their pay and working conditions intended to boost profits

Customers of UK energy suppliers have been concerned that record-breaking shareholder dividends in 2022 occurred at the same time as consumer prices rose by more than 60%

US grocery giant Walmart has faced numerous protests by local communities, angered by the business's profit-driven decision to close underperforming stores

Large corporations such as Amazon and Shell have been accused of tax avoidance by declaring their profits in countries with lower tax rates

This reduces the amount of income for the UK government

Leaders decide how much they listen, share power and communicate

A consultative style invites dialogue; an autocratic style can shut voices out

At John Lewis Partnership senior managers hold 'Partner Voice' forums so staff vote on store plans, keeping employee relations strong

What the firm is trying to achieve focuses resources and attention on some stakeholders more than others

Tesco’s 2024 goal of 4 % UK sales growth led to price‑match deals that pleased shoppers but squeezed some suppliers

Smaller firms can talk to stakeholders one‑to‑one

Large firms need formal systems and policies, which can feel less personal

A local bakery chats directly with regular customers every morning

Tesco uses loyalty‑card data dashboards to manage millions of shoppers

Who owns the company affects whose voice matters most

Family, employees or outside investors each want different things

Employee‑owned Richmond Villages (part of Bupa) involves staff councils in care‑home decisions, reflecting worker‑owner influence

Groups with legal, financial or public opinion power can force changes

Weak groups may get less attention

The strength of the RMT, the rail workers' union, means train operators must negotiate pay quickly to avoid service shutdowns

Booms, recessions, inflation or intense rivalry shift priorities and bargaining power

During the cost‑of‑living squeeze, UK supermarkets leaned harder on suppliers for lower prices to keep cash‑strapped customers loyal

New laws, taxes or subsidies can add to the need to improve stakeholder relationships

They can, though, open opportunities, altering how firms treat stakeholders

The 2024 Plastic Packaging Tax pushed food brands to adopt recycled plastic, pleasing eco‑activists

Suppliers, though, were worried about the costs of redeveloping packaging for retailers

Shifts in public values or demographics change stakeholder expectations and can create pressure points

Rising veganism led McDonald’s UK to launch the McPlant burger

This strengthened ties with ethical consumers and animal‑welfare groups

New technology can remove or reshape jobs and customer contact

This could create new expectations or concerns.

Self‑checkout tills reduced traditional cashier roles in UK supermarkets

Managers had to retrain staff and reassure existing workers

Organisation and stakeholder share decision‑making and responsibility

This approach builds strong, long‑term trust and pools skills

It can be slow and costly to agree on actions and needs high mutual commitment

Jaguar Land Rover asked 5,000 key suppliers to join its 2030 net‑zero plan and share their carbon data, treating them as partners in the effort

Stakeholders help design and carry out projects but final sign‑off stays with the business

This approach can generate creative ideas

There is a risk of 'too many cooks' and decision drift if views of stakeholders conflict

Oxford City Council let residents co‑create its Oxford Air Needs Your Care campaign to encourage drivers to turn off their engines while stationary

Business seeks views before deciding; feedback can shape plans

This approach shows transparency and can mean issues are spotted early

Stakeholders may feel ignored if the final decision differs from their input

Heathrow Airport ran multi‑stage public consultations on flight‑path changes and a third runway, gathering feedback at more than 40 local events

One‑way flow: the company sends out news to stakeholders

A fast, uniform message is provided, particularly good for urgent updates

This approach can create information overload or be missed if people ignore messages

Octopus  Energy emails customers whenever Ofgem’s price cap changes, explaining new prices ahead of bills

Information is made available for stakeholders to access when they choose

This approach is low cost and lets stakeholders drill into details at their own pace

It relies on stakeholders taking the initiative so silent audiences may stay uninformed

Rolls‑Royce posts an interactive annual report and results hub on its investor website for anyone to download or explore