Shareholder vs Stakeholder Concepts: Understanding Business Ethics

The video explores two primary business concepts: the shareholder concept, which focuses on maximizing profits for shareholders, and the stakeholder concept, which considers the broader impact on all stakeholders, including employees, suppliers, and the community. It discusses how these concepts influence business expansion and decision-making processes, with the shareholder model favoring exclusive decision-making by executives, while the stakeholder model promotes inclusive decision-making. The role of corporate social responsibility (CSR) is also examined in the context of these concepts.

What is the primary focus of the shareholder concept in business?

• Maximizing profits for shareholders

• Reducing environmental impact

• Ensuring employee satisfaction

• Improving customer service

Which of the following is a key consideration in the stakeholder concept?

• Increasing shareholder dividends

• Focusing solely on market expansion

• Maximizing executive bonuses

• Considering the impact on all stakeholders

How does the stakeholder concept view business expansion?

• As a strategy to dominate the market

• As a way to reduce operational costs

• As an opportunity to enhance community presence

• As a means to increase shareholder value

What characterizes decision-making under the shareholder concept?

• Inclusive and consultative

• Environmentally driven

• Community-oriented

• Exclusive and focused on shareholder interests

In the context of business concepts, what does CSR stand for?

• Community Service Requirement

• Company Sales Report

• Customer Satisfaction Rating

• Corporate Social Responsibility