CORPORATE SOCIAL RESPONSIBILITY - SHAREHOLDER VS STAKEHOLDER CONCEPT

Question 1

What is the shareholder concept

Answer 1

The traditional view of business, that they should be run for the benefits of their owners. The aim of business is to profit maximise.

Question 2

What is the stakeholder concept

Answer 2

An approach to business that recognises the importance of benefiting each of the different groups a business has an impact on. The aim of business is to profit satisfice (make a profit to still run the business, and satisfy shareholders, but you might sacrifice some of the profits to reinvest into the company)

Question 3

What are beneficiaries in the view of the shareholder and stakeholder concept

Answer 3

Shareholder: Shareholders/ owners

Stakeholder: Shareholders, customers, employees, local / national community

Question 4

What is timescale in the view of the shareholder and stakeholder concept

Answer 4

Shareholder: Short term view

Stakeholder: Long term view

Question 5

What are objectives in the view of the shareholder and stakeholder concept

Answer 5

Shareholder: Profit maximise, market domination

Stakeholder: Profit satisfice, customer satisfactio, staff development, ethical / environmental

Question 6

What is culture in the view of the shareholder and stakeholder concept

Answer 6

Shareholder: Profit maximise, market domination

Stakeholder: Profit satisfice, customer satisfactio, staff development, ethical / environmental