chapter 5 (Stakeholders in a business)

Question 1

stakeholders

Answer 1

people or groups of people who can be affected by, and therefore have an interest in any action by an organisation

Question 2

Stakeholder concept

Answer 2

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

Question 3

Who are the stakeholders?

Answer 3

1 customers
2 suppliers
3 employees and their families 
4 local communities 
5 government and government agencies
6 special interest groups 
7 shareholders

Question 4

what is a businesses Social responsibility?

Answer 4

Social responsibility is the duty and obligation of a business to other stakeholders.
1 share holder- good return on investment
2 employee- fair pay and working conditions
3 supplier- regular business and prompt payment
4 customer- fair price and safe product
5 local community- jobs and minimum disruption
6 government- jobs and minimum disruption
7 environment- less pollution

Question 5

Ethics

Answer 5

Ethics refers to the moral rights and wrongs of any decision a business makes.

Businesses may adopt ethical policies because they believe in them or they believe that by showing they are ethical, they improve their sales.

Question 6

examples of ethical policies are

Answer 6

• Reduce pollution by using non-fossil fuels.
• Disposal of waste safely and in an environmentally friendly manner.
• Sponsoring local charity events.
• Trading fairly with developing countries

Question 7

What are Customers Roles, Rights and responsibilities?

Answer 7

Roles: - purchase goods and services.
- provide revenue from sales

Rights: - to receive goods and services that meet local law regarding health and safety, design etc
- to be offered replacement, repairs, compensation in the event of failure of the product/services