GOENKA & ASSOCIATES EDUCATIONAL TRUST

VASANT VIHAR HIGH SCHOOL & JR. COLLEGE

GRADE -10 COMMERCIAL STUDIES
NOTES 2025-26
Ch.1 STAKEHOLDERS IN A COMMERCIAL ORGANISATION

ANSWER THE FOLLOWING QUESTIONS:

1. Who is a Stakeholder?
Ans: A stakeholder is an individual, group, or organization that has a vested interest, or "stake,"
in the decisions, activities, and outcomes of a business, organization, or project, whether they are
directly or indirectly affected by it. They may or may not be members of the organisation.
Stakeholders can be internal stakeholders or external stakeholders.
2. Who is an Internal stakeholder?
Ans: An internal stakeholder is any individual or group within a company who has a vested
interest in the success or failure of a project. Internal stakeholders are also referred as primary
stakeholders as they typically have more knowledge about the inner workings of a company and
its objectives than external stakeholders. Internal stakeholders include employers, managers,
owners, employees, shareholders.
3. Who is an external stakeholder?
Ans: External stakeholders are those outside of a company who are indirectly affected by its
decisions and outcomes. These entities are also referred to as secondary stakeholders because their
stake in the company or project is often more representational than direct.
External stakeholders include customers, suppliers, government agencies, creditors, labor unions
and community groups.
4. Expectations of Employers/ owners/ Managers/ Shareholders

✓ Strategic Leadership: Employers are expected to provide clear direction and strategic
vision for the organization, guiding it towards its goals and ensuring long-term
sustainability and growth.
✓ Effective Management: Employers should implement efficient management practices
to optimize resources, streamline operations, and foster a productive work
environment.

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 ✓ Financial Stewardship: Employers are responsible for managing the organization’s
finances prudently, making sound investment decisions, and ensuring fiscal
accountability to stakeholders.
✓ Market Responsiveness: Employers should monitor market trends, anticipate changes,
and adapt the organization’s strategies and offerings to remain competitive and meet
customer needs.
✓ Compliance and Governance: Employers must uphold legal and regulatory
requirements, adhere to ethical standards, and maintain transparency in their business
practices to build trust and credibility with stakeholders.
✓ Talent Management: Employers should attract, retain, and develop top talent by
offering competitive compensation, providing opportunities for growth
and advancement, and fostering a supportive and inclusive workplace culture.
✓ Innovation and Adaptability: Employers need to foster a culture of innovation,
encouraging experimentation, embracing new technologies, and adapting quickly to
changing market dynamics to stay ahead of the curve.
✓ Stakeholder Engagement: Employers should actively engage with various
stakeholders, including employees, customers, investors, and communities, to build
strong relationships, address concerns, and create shared value for all parties involved.

5. Expectations of Employees:
✓ Fair Wage and Benefits:
It is standard for employees to want to be compensated for their services with a wage
or salary that is appropriate, benefits such as health insurance or retirement plans, and
reimbursement for overtime hours or other related expenses.

✓ Risk-Free Work Environment:

Employees expect to work in an environment that preserves their safety and promotes
their wellbeing.

✓ Expectations and Responsibilities Coaching:

Employees need to meet targets and deliverables to their roles and responsibilities and
for the performance expectations set for them.

✓ Growth on Position Offered:

Many employees wish to go further in the scope of new skills that may be taught, in the
hope that career advancement and further growth will come in the organization.

✓ Freedom of Speech and Decisions:

Documents decisions and their changes, task progress, and company policies need to
be communicated to the staff. The staff should also voice their opinions in discussions
with managers.

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 ✓ Empowerment and Care:
The staff has the right to expect the management to support their loyalty to the
οrganisation.

6. Expectations of Government:
✓ Laws and Regulations:
Organisation must comply with all applicable laws and regulations, including tax laws,
labor laws, environmental laws, and consumer protection laws.

✓ Transparency:
Businesses are expected to operate with integrity and transparency, avoiding
corruption, fraud, and other unethical practices and must ensure timely payment of
taxes with honesty.

✓ Assist in solving national problems:

Businesses are expected to contribute to job creation and economic growth, by investing
in their businesses and creating opportunities for local communities and thereby helping
in solving national problems like poverty, unemployment, unbalanced regional growth
etc.

✓ Accountability:
Businesses should respect human rights in their operations and supply chains, including
fair labor practices and safe working conditions by making proper use of scarce
resources of the nation.

✓ Collaboration:
Businesses should collaborate with government and other stakeholders to address
societal challenges and promote sustainable development and avoid monopoly and
concentration of economic power.

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 7. Distinction between Stakeholders and Shareholders
(learn and memorize the first five points)
Basis of Stakeholders Shareholders
Comparison

Stakeholders are individuals or Shareholders are individuals or

Definition organization that has an active interest organizations who are the holders of one
in the functioning of a company or more shares of the company. In other
which can include employees, words, they are individuals or entity that
customers, suppliers and society. owns a portion of company’s stock.

Stakeholders are interested in the Shareholders are primarily concerned with

Interest in company's overall performance, the profitability and return on their
Company impact on society, and sustainability. investment.

Stakeholders can influence the Shareholders have direct influence

company’s decisions, policies, and through their voting rights in company
Influence corporate affairs indirectly through decisions, typically proportional to the
their interactions and feedback. number of shares they hold.

The objective is to ensure that the The main objective of shareholders is to

company operates responsibly, maximize their investment through
Objective ethically, and sustainably, benefiting dividend payouts and appreciation in
all parties involved. stock value.

The events in a company can directly Shareholders are always directly impacted
Impact or indirectly impact stakeholders by events in a company

Stakeholders cannot be shareholders Shareholders are stakeholders in a

Roles in a company company

Not all stakeholders receive monetary All shareholders receive monetary benefit
Monetary benefit
Benefit

They can be of various types such as There are two types of shareholders,
Types employees, creditors, government, namely, equity shareholders and
suppliers, customers preference shareholders

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 8. Distinguish between Internal Stakeholders and External Stakeholders
Basis of Comparison Internal Stakeholders External Stakeholders
Definition People or organizations that People or organizations that do
work closely with the business not work but are impacted by the
and have a stake in its success. company's decisions or actions.

Examples Workers, supervisors, Consumers, vendors, lenders,

proprietors, investors, and governmental organizations,
board members local residents, and rival
businesses
Connection to the Company

Relation to the direct participation in daily indirect relationship that is

Company activities. frequently impacted by the
company's activities

Impact can have a direct impact on can have an indirect impact on

the decisions and performance the success and reputation of the
of the business. business

Focused on usually centered on the long- usually centered on how the

and short-term objectives of business affects their personal
the business. interests.

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