Business Management 1A
MNB1501
Assignment 02 for Semester 01 (compulsory)
Unique Number 724417
, STUDY UNIT 5: CORPORATE SOCIAL RESPONSIBILITY
QUESTION 1
The shareholders of a company such as SAB are usually viewed as _____________
stakeholders.
1 primary
2 external
3 minor
4 secondary
Answer:
5.4.1 Defining stakeholders
Stakeholders are persons or groups who are potentially affected by, or affect, a company’s
business activity. Stakeholders could have, or claim, ownership rights or interest in a
corporation’s activities. These claims may be legal or moral, individual or collective.
Stakeholders with similar claims, rights or interest can be classified as belonging to the same
group – for example, staff, clients, traditional leaders.
On a basic level, there are two kinds of stakeholders. Primary stakeholders are stakeholders
whose ongoing support for the company is vital for its survival. These stakeholders
commonly have some contractual or financial relationship with the company.
Most importantly, primary stakeholders include shareholders and employees. A company
cannot survive if shareholders or employees withdraw their support for the company.
MNB1501
Assignment 02 for Semester 01 (compulsory)
Unique Number 724417
, STUDY UNIT 5: CORPORATE SOCIAL RESPONSIBILITY
QUESTION 1
The shareholders of a company such as SAB are usually viewed as _____________
stakeholders.
1 primary
2 external
3 minor
4 secondary
Answer:
5.4.1 Defining stakeholders
Stakeholders are persons or groups who are potentially affected by, or affect, a company’s
business activity. Stakeholders could have, or claim, ownership rights or interest in a
corporation’s activities. These claims may be legal or moral, individual or collective.
Stakeholders with similar claims, rights or interest can be classified as belonging to the same
group – for example, staff, clients, traditional leaders.
On a basic level, there are two kinds of stakeholders. Primary stakeholders are stakeholders
whose ongoing support for the company is vital for its survival. These stakeholders
commonly have some contractual or financial relationship with the company.
Most importantly, primary stakeholders include shareholders and employees. A company
cannot survive if shareholders or employees withdraw their support for the company.
