Who are stakeholders and what are examples of them
Hold a stake in the business or business performance
- shareholders
- employees
- managers
- customers
- pressure groups
- suppliers
- goverment
- local community
What is the trade off with ethics
most ethical desicions cost money, and therefore impact profits
Examples of ethical descisions
- treating employees well
- environmental care
- suppliers
- fair recruitement
What is corporate social responsibility
going above and beyond the legal requirement in terms of ethical behaviour
benefits of being ethical
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
Drawbacks of being ethical
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
