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Explain the term co-operative relationship between stakeholders in a business - Leaving Cert Business - Question A - 2017
Question A
Explain the term co-operative relationship between stakeholders in a business. Describe one example of a co-operative relationship which could arise between each of... show full transcript
Worked Solution & Example Answer:Explain the term co-operative relationship between stakeholders in a business - Leaving Cert Business - Question A - 2017
Step 1
Explain the term co-operative relationship between stakeholders in a business.
Answer
A co-operative relationship exists when both parties work together to achieve a common goal. It is characterized by mutual benefit and collaboration, creating a win-win situation for all involved. Such relationships enhance the ability of stakeholders to achieve their objectives more effectively than working independently. This cooperation leads to improved communication and stronger partnerships, ultimately benefiting the organization and all its stakeholders.
Step 2
Describe one example of a co-operative relationship which could arise between Employer and Employee.
Answer
A co-operative relationship between an employer and employee can be illustrated through fair wages. When an employer offers wages that reflect the work being done, it helps in retaining skilled employees who are motivated to contribute positively to the company. In turn, this leads to increased productivity and a more stable workforce. Employers may also involve employees in decision-making processes, fostering a collaborative environment where workers feel valued and invested in the success of the company.
Step 3
Describe one example of a co-operative relationship which could arise between Investor and Manager of a Business.
Answer
A co-operative relationship between an investor and a manager is demonstrated through transparent financial information. When managers provide investors with clear and accurate information regarding financial performance and future projections, it builds trust. This transparency reassures investors that their funds are being managed properly and generates a sense of safety about their investments, leading to continued support and potentially increased investment for future projects.
Step 4
Describe one example of a co-operative relationship which could arise between Producer and Consumer.
Answer
A co-operative relationship between a producer and consumer can be seen in brand loyalty. When producers maintain high quality and ensure fair pricing for their goods, consumers are likely to repeatedly purchase the product. This reciprocal relationship builds trust and brand loyalty, as consumers feel confident in the value they receive. Furthermore, producers who address consumer complaints fairly also strengthen their relationship, ensuring that consumer needs and concerns are met, leading to enhanced satisfaction and repeat business.