VCE Business — Unit 3 AOS 1
Stakeholders — Flashcards & Quiz
Stakeholders are individuals or groups with an interest in a business's operations and outcomes, and VCE Business Management Unit 3 AOS 1 expects you to identify key stakeholder groups, analyse their often competing interests, and discuss how managers balance these when making decisions. Corporate social responsibility (CSR) frames the ethical dimension.
Sample Flashcards
Q1: Identify the key stakeholders of a business and their interests.
Key stakeholders: 1) Owners/shareholders — profit, return on investment, business growth. 2) Employees — fair wages, safe working conditions, job security. 3) Customers — quality products, fair prices, good service. 4) Suppliers — timely payment, ongoing contracts. 5) The general community — employment, minimal environmental impact. 6) Trade unions — fair pay and conditions for members. 7) Government — tax revenue, compliance with regulations, employment.
Q2: What is corporate social responsibility (CSR) and how does it relate to stakeholders?
Corporate social responsibility (CSR) is the ethical obligation of a business to consider the interests of all stakeholders — not just shareholders — in its decision-making. CSR includes environmental sustainability, ethical sourcing, fair treatment of employees, community engagement and transparent governance. Businesses that practise CSR aim to balance profit with positive social and environmental outcomes.
Sample Quiz Questions
Q1: Employees and shareholders always have the same interests in a business.
Answer: FALSE
Their interests often conflict. Shareholders want higher profits and dividends, which may be achieved by cutting labour costs. Employees want higher wages, better conditions and job security, which increases costs. Managers must balance these competing stakeholder interests.
Q2: The general community is not considered a stakeholder of a business.
Answer: FALSE
The general community IS a stakeholder. Businesses affect their local communities through employment, environmental impact, traffic, noise, and economic contribution. Community interests include jobs, environmental protection and social responsibility.
Q3: Corporate social responsibility requires businesses to consider only shareholder interests in their decision-making.
Answer: FALSE
CSR requires businesses to consider the interests of ALL stakeholders — employees, customers, suppliers, the community and the environment — not just shareholders. It involves balancing profit with social and environmental responsibility.
Related Concepts
Last updated: March 2026 · 2 flashcards · 3 quiz questions