Flashcards in Business Internal and External Stakeholders/ Corporate Social Responisbility Deck (7)
What are Stakeholders?
Stakeholders are groups and individuals who interact with the business and have a vested interest in its activities
Who are the Internal Stakeholders?
Who are the External Stakeholders?
3. Interest Groups
6. Members of the community
Who are in the Interest Groups?
- Trade Unions
- Consumer Groups
- Specific Issue Groups
What is Corporate Social Responsibility?
Corporate Social Responsibility is the obligations a business has over and above the legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.
What are some potential conflicts between CSR and Stakeholders?
- Employees require safe working conditions and reasonable wages, but this will reduce the businesses profit and dividends to shareholders.
- Management could attempt to maintain profit and high divided to shareholders by raising the prices of the products, but this will upset consumers, who expect reasonably priced products.