Learn: The Local Community as a Stakeholder

Welcome!Welcome! You've already learned about stakeholders such as owners, employees, customers, and suppliers. Today, we’ll focus on a new stakeholder: the local community. Let’s explore their role and how businesses interact with them.

Who Is the Local Community?The local community refers to the people living near a business. They can include residents, schools, charities, and local organisations. Businesses impact the community in various ways, such as providing jobs, supporting local events, or affecting the environment. It's important for businesses to consider the needs and expectations of their local community.

Why Does the Local Community Matter to Businesses?The local community is an important stakeholder because they can influence the reputation of the business. A positive relationship with the community can lead to customer loyalty, better public image, and support for the business. Negative impacts, such as pollution or noise, can lead to complaints, protests, or legal action.

How Businesses Impact the Local CommunityBusinesses can affect the local community positively or negatively. For example, creating jobs and supporting local charities are positive impacts. However, pollution, traffic congestion, or noise are examples of negative impacts. Balancing these impacts is crucial for long-term success.

Conflicts Between Businesses and the Local CommunitySometimes businesses and the local community might have conflicting interests. For example, residents might oppose new developments due to concerns about increased traffic or environmental harm. Businesses must address these conflicts to maintain a positive relationship with the community.

How Businesses Can Support the Local CommunityTo build positive relationships, businesses can support the local community by sponsoring events, offering employment opportunities, donating to charities, or reducing their environmental impact. These actions improve the community and enhance the business’s reputation.

Review Time!You've learned about the local community as a stakeholder, how businesses impact them, and how conflicts can arise. Now, let’s test your understanding of these concepts with a few review questions!