Prepared by

5 Stakeholders in a business
 Stakeholders: People or groups of people that are affected by, and therefore have an interest in the activities
of a business.
 Stakeholder concept: The view that businesses and their managers have responsibilities to a wide range of
groups- not just their shareholders
 The roles, rights and responsibilities of stakeholders:
Stakeholders Role Rights Responsibilities
Purchase goods and Receive goods and Honesty
services services that meet local
laws
Customers Provide revenue Offered replacements, Not stealing
repairs, etc- as legally
obligated
Not make false claims
Supply goods and services On-time payment Supply goods in time and
Suppliers condition already decided
Fair treatment
Provide manual and other Treated within minimum Honesty
labour services legal limits
Employment contract Meet employment
payment and treatment contract
Employees Join a trade union Cooperate with
management for
reasonable requests
Observe Ethical code of
conduct
Provide local services and Consulted about major Cooperate
infrastructure changes
Local Community
Not have lives badly Meet reasonable requests
affected
Laws- restrain business Businesses to meet Treat businesses equally
activity requirements
Law and order- allow Prevent unfair
Government activity to take place competition
Achieve economic stability Good trading links
internationally- allow
international trade
Provide finance in Repaid on agreed dates Provide agreed finance on
Lender different forms agreed date and time
Paid finance charges

5.2. Corporate social responsibility - an evaluation

 Prepared by

 It is the concept that accepts that businesses should consider the interests on the society in their activities
and decisions, beyond the legal obligations that they have
 CSR distracts businesses from their key role of using scare resources to their maximum and produce
goods and services
 CSR is a form of WINDOW DRESSING
 If it is found that CSR is used as a PR activity, it will lead to bad word of mouth
 CSR maybe expensive in the short run, but will help the business raise profits in the future
 As it will lead to better reputation, lower regulations, chances of subsidies and grants, customer loyalty,
etc.