Chapter 5: Stakeholders In A Business

Question 1

Define stakeholders

Answer 1

Stakeholders: people or groups of people who can be affected by – and therefore have an interest in – any action by an organisation.

Question 2

Define stakeholder concept

Answer 2

Stakeholder concept: the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders.

Question 3

Define corporate social responsibility

Answer 3

Corporate social responsibility: the concept that accepts that businesses should consider the interests of society in their activities and decisions, beyond the legal obligations that they have.