Business – 1.5 Stakeholders – Relative importance and influence | e-Consult
1.5 Stakeholders – Relative importance and influence (1 questions)
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Model Answer:
Introducing a CSR programme influences stakeholders in the following ways:
- Customers: Perceive the brand as ethical, increasing loyalty and willingness to pay a premium.
- Employees: Feel greater pride and motivation, leading to higher retention and productivity.
- Investors/Shareholders: View CSR as risk mitigation and a sign of sustainable growth, potentially boosting share price.
- Community and NGOs: Experience improved relations, reducing opposition and fostering partnerships.
- Regulators: May grant favourable treatment or incentives for demonstrated social responsibility.
Long‑term performance benefits include:
- Enhanced reputation, which can translate into market share growth.
- Reduced operational risks through better stakeholder engagement.
- Attraction of talent and investors who prioritize ethical practices.
- Potential cost savings from sustainable resource use.
Overall, a well‑designed CSR initiative aligns business objectives with stakeholder expectations, creating a virtuous cycle of trust and profitability.