3.4

Question 1

Who are stakeholders and what are examples of them

Answer 1

Hold a stake in the business or business performance
- shareholders
- employees
- managers
- customers
- pressure groups
- suppliers
- goverment
- local community

Question 2

What is the trade off with ethics

Answer 2

most ethical desicions cost money, and therefore impact profits

Question 3

Examples of ethical descisions

Answer 3

• treating employees well
• environmental care
• suppliers
• fair recruitement

Question 4

What is corporate social responsibility

Answer 4

going above and beyond the legal requirement in terms of ethical behaviour

Question 5

benefits of being ethical

Answer 5

Higher revenues – demand from positive
consumer support
Improved brand and business awareness and
recognition
Better employee motivation and recruitment
New sources of finance – e.g. ethical investors

Question 6

Drawbacks of being ethical

Answer 6

Higher costs – e.g. sourcing from Fairtrade
suppliers rather than lowest price Higher
overheads – e.g. training & communication of
ethical policy
A danger of building up false expectations