Business Internal and External Stakeholders/ Corporate Social Responisbility

Question 1

What are Stakeholders?

Answer 1

Stakeholders are groups and individuals who interact with the business and have a vested interest in its activities

Question 2

Who are the Internal Stakeholders?

Answer 2

1. Owners
2. Shareholders
3. Directors
4. Management
5. Employees

Question 3

Who are the External Stakeholders?

Answer 3

1. Customers
2. Competitors
3. Interest Groups
4. Government
5. Suppliers
6. Members of the community

Question 4

Who are in the Interest Groups?

Answer 4

• Trade Unions
• Consumer Groups
• Specific Issue Groups

Question 5

What is Corporate Social Responsibility?

Answer 5

Corporate Social Responsibility is the obligations a business has over and above the legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.

Question 6

What are some potential conflicts between CSR and Stakeholders?

Answer 6

• Employees require safe working conditions and reasonable wages, but this will reduce the businesses profit and dividends to shareholders.
• Management could attempt to maintain profit and high divided to shareholders by raising the prices of the products, but this will upset consumers, who expect reasonably priced products.

Question 7

what is the Triple Bottom Line?

Answer 7

The Triple Bottom Line refers to the economic, social and environmental performance of the business.