P3 Explain how 3 different digital strategies can be used by selected businesses to meet two different marketing objectives.
P4 Explain how 3 different compensation models can be used to measure the effectiveness of 3 digital marketing strategies.
P5: Explain the benefits of, and concerns ab...
Unit 20 : Investigating corporate social responsibility
P1
Explain how CSR issues impact on the stakeholders of businesses
What are stakeholders?
A stakeholder is an individual that would take interest in a company who can either affect or be
affected by the business, this would normally include gains and loses in profits. The stakeholders
have influence and power within the business even if its not necessarily a lot.
Who are the stakeholders?
Within the business there are internal stakeholders who consist of owners and workers this is
because they are directly connected to the business and either work or manage it from the inside
out. There are also external stakeholders which are customers, suppliers, community, government,
investors, trade unions and media. Each of them has a different role and effect on the business as
they can all influence businesses in different ways.
Stakeholder Impact on a business
Owners and workers Owners out of all the stakeholders have the most influence out of all the
and shareholders other stakeholders. This is because they are the ones to make all the
decisions within the business and get a final say in whatever is
happening. They are also the ones to start up the business and slowly
grow it through time meaning that they paid for the funding of all of that
too out of a personal loan or their own pockets. Shareholders are the
ones that influence the objectives in a business they do this by having
meetings and voting’s about the objectives of the company, so everyone
gets a say depending how many shares they have.
Customers Customers are the main source of profit for a business as they are the
ones buying the products and services as well as giving back feedback
and having opinions about the business so the business could look at
how to adjust to the customers’ needs therefore building a better
customer and business relationship. This could also have a negative
affect as they could warn other people against using the business.
Suppliers Suppliers can have a significant impact on a business if there are changes
in the quality of products sold as well as the reliability of their deliveries.
This can make a big difference to a business as if they have a good
quality of products when it might be rare at the time then your business
is going to attract more customers, this could also go the other way
where if the quality of your goods is bad then your customers are more
likely to go to someone else.
Community If a busines in a small community affects many residents negatively, they
can object as well as protest by going to the local council. A positive side
to them for a business is that they are also the ones that will support
your business the most as they are geographically the closest to the
actual business.
Government Government has a lot of power and affect on a business as government
can pass new laws, change tax levels or amend labels of government
spending in ways that affects the business, this could be done by
providing grants and funding for the business, this could be done if the
business has good CSR and if its contributing to making the country
better and more green as well as less cruel to workers.
Investors The percentage of shares held by a shareholder determines how much
influence you have on a business and to what extent you help with
, Wiktoria Sobel
decision making. The best way to be an investor in a company is to own
more than 50% of the company as if you have more than half of it you
will get the most say regarding to any future plans of the company. If
the company is in debt, the shareholders could be held liable. However,
the amount of their liability is limited by their investment meaning that
the more you invest the more responsible you are for the decisions
made.
Trade Unions Trade Unions can work with employees to negotiate a fairer pay
settlement. This could have a positive or negative affect on the business
as higher wages lead to increased productivity as well as the unions
being able to increase wages as well as increasing employment in
workplaces. However, a lot of businesses tend to say they don’t have
enough to pay the employees more without making the customers angry
by raising the prices.
Media Media affects the businesses reputation meaning it affects the way
customers perceive a business this could be done by a social media post,
a word to mouth opinion, an official good/bad review etc. It is also a
great way for a business to promote their newest product or just their
brand in general by having social media accounts so their fans could find
and follow them as well as playing in ads and search engine
optimisation. A good image for a brand is important as it will help to
attract consumers as well as have more loyalty by building on the
consumer business relationship.
Stakeholders vs shareholder theory
Shareholder theory is based on the influence that shareholders should have over businesses this
then pushes the idea that the only responsibility of managers is to serve in the interest of
shareholders by using the businesses resources to increase profits. Stakeholder theory states that a
company should create value for all stakeholders not just shareholders suggesting that businesses
should be much more focused on the local communities and society instead of just looking for ways
to maximise profits. I feel like the stakeholder theory is important as it forces businesses to address
their ethics, morals and values when managing stakeholders for a project or an organisation.
How are stakeholders affected by CSR issues?
Environmental issues Consumer protection Supply chain
Owners This would have a This could have a This would be good
/workers negative effect on negative effect on this for workers as it
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