P2/M1 Unit 37 Essay examples

1275 Words May 23rd, 2013 6 Pages
Explain the implications for the business and stakeholders of a business operating ethically. (P2)

All businesses have a number of stakeholders each with individual interests in what the business does, the owners (In co-ops case, the members) will want good financial gains from their investments. Businesses such as co-op should be managed with the interests of all stakeholders in mind.

Stakeholder is anyone with an interest in a business. Stakeholder can be individuals, groups or even organisations that are affected by the activity of the business, they include:

• Owners who are interested in how much profit the business makes • Managers who are concerned about their salary • Workers who want their wages to be
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As I mentioned in the introduction it is more than likely that there will be conflict between one or more of the stakeholders of the cooperative, one conflict that is more than possible is between the environmentalists and the members of the cooperative. If the co-op bring out a brand new product or range etc at it seems to be doing well then the members will be pleased that their investments has paid off and they are getting good profits of it. However if the products is controversial for example tree’s have been cut down to help make the packaging of the product then environmentalists might decide to make a big campaign, protesting to get the products of the shelves. If the environmentalists succeed in their protests then it means the members are losing a good profit which is a big loss for the company.

The second type of stakeholders is:

External stakeholders: Groups who may have an impact in the business but are not in the inner circle – eg suppliers and the local community. The suppliers are a very important part of the business and without them the co-op wouldn’t be able to function properly. If for example the co-op wanted to reduce their carbon emissions then this could affect the suppliers.
Because the suppliers will normally either use big lorry’s or through aeroplanes (if they are shipping from abroad) this

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