Lesson 2 Flashcards
-Individuals or entities that own stocks (shares) in a company.
-They have a financial interest in the company’s performance because their shares can increase or decrease in value.
-___________ typically receive dividends (a portion of profits) and have voting rights in corporate decisions (e.g., electing the board of directors).
Stockholders
-A type of stockholder who owns shares in a publicly traded or private company. (In most cases, ___________ and “stockholder” mean the same thing.)
Shareholders
Anyone who has an interest or is affected by a company’s operations, including employees, government, and investors. customers, suppliers,__________ are any individuals or groups affected by a company’s actions, decisions, or financial
-__________ do not necessarily own shares in the company, but they have an interest in how it operates.
Stakeholders
Types of Stakeholders:
A. Internal Stakeholders
B. External Stakeholders
People directly connected to the company.
Employees (workers depend on the company for their income)
Managers (their careers and bonuses depend on company success)
• Owners (business founders or major investors)
A. Internal Stakeholders
People outside the company who are affected.
Customers (rely on the company’s products or services)
Suppliers (sell materials or goods to the company)
Government (collects taxes and regulates the business)
Community (the company’s actions impact jobs and the environment)
B. External Stakeholders
refers to a company’s commitment to operating in an ethical, sustainable, and socially responsible manner. It involves businesses taking responsibility for their impact on society, the environment, and stakeholders beyond just generating profits.
Corporate Social Responsibility (CSR)
•Builds a Positive Reputation
•Increases Employee Engagement
•Strengthens Customer Loyalty
•Ensures Sustainability
•Reduces Regulatory Risks
(5) Significance of CSR
(4) Dimensions of CSR (Carroll’s Pyramid of CSR)
1.Economic Responsibility
2.Legal Responsibility
3.Ethical Responsibility
4.Philanthropic Responsibility
Real-World Examples of CSR (Corporate Social Responsibility)
Google
Unilever
Tesla
Starbucks
Microsoft
Drivers (Forces that Promote CSR):
•Regulation
•Market Behavior
•Social Activism
•Culture
•Strategy
(3) Barriers (Challenges that Limit CSR):
•Limited Financial Resources
•Profit Maximization
•Availability of Human Resources
Governments create laws requiring businesses to follow CSR policies (e.g., in China, CSR is now mandatory.
Regulation
Companies adopt CSR to build a good reputation and gain a competitive edge.
Market Behavior
Public pressure, social media, protests, and lawsuits push businesses to be socially responsible.
Social Activism
Shared values, traditions, and norms influence businesses to adopt CSR.
Culture
Companies include CSR in their business plans as it helps long-term growth and sustainability.
Strategy
Some businesses, especially small ones, lack the money for CSR programs.
•Limited Financial Resources
Many companies prioritize profit over social responsibility, making CSR a lower priority.
Profit Maximization
A company may not have the right people or skills to implement CSR initiatives.
Availability of Human Resources
