stakeholders, conflict, CSR (ch2)

Question 1

stakeholders

Answer 1

Any individual or group with a vested interest towards the operations of the business

ECCOGS
employees - higher/fair income, ethical
customers - needs met, quality, low cost
competitors - want the business in question to have a lower market share
owners - voting rights, more profit –> dividends, capital gain
government - wants it to benefit the country/community/state
suppliers - establish a relationship, they get paid fairly

Question 2

potential conflict

Answer 2

owners vs customers
may be a reduction in quality of goods or services but price remains the same, thus, conflict, as customers are wanting good quality at a reasonable price
owners vs employees
employees want higher wage. owners want profit to go back into business to make more capital gain and more dividends
customers vs government
be similar to owners vs customers as it may be a government business enterprise
owners vs community
operations of the business may cause environmental issues (pollution, waste) whilst the community would want the business to be environmentally friendly

Question 3

corporate social responsibility (CSR)

Answer 3

when businesses go above what is legally required to ensure the wellbeing of their stakeholders, the community and the environment whilst also contributing to economic development

using fair trade ingredients (ingredients are from a place that ensures farmers + workers are being paid fairly)
reducing carbon footprint (carbon damages environment) (airline asks for money to be given to forestry)
providing flexible work atmosphere for employees (working from home)
waste management
noise pollution
recycling