Impact on others

Question 1

Ethics

Answer 1

These a the moral principles that govern a persons behaviour.

Question 2

Social Responsibility

Answer 2

This is a business obligation to pursue policies, make decisions and take actions that will benefit the society.
A socially responsible organisation will look at both shareholders and stakeholders.

Question 3

Shareholder model

Answer 3

This model is a view of social responsibility to an organisation which should be maximising profit for shareholders. By maximising profits the organisation maximises shareholders wealth and satisfaction. Some shareholders may not like the organisations social causes hence why companies should just focus on maximising profits so shareholders can invest their wealth and time for social causes.

Question 4

Stakeholder model

Answer 4

Stakeholders are people / groups that have an interest in the company. Hence stakeholders are affected by the organisations actions and vice versa. This is the long term survival of a company and is achieved by satisfying the interest of the stakeholders.

Question 5

Primary Stakeholders

Answer 5

This is the group of people / individuals that a company relies on for its long term survival. 
Shareholders 
Employees 
Customers 
Suppliers 
Governments 
Local Communities 

Primary stakeholders take precedence over secondary stakeholders.