31.Stakeholders are people or groups with a legitimate interest in a company’s actions.
32.According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.
33.The two categories of stakeholder groups are internal stakeholders and external stakeholders.
34.The media would be an example of a secondary stakeholder group for an organization.
35.A corporation exists to create wealth for shareholders, managers, employees, suppliers, and customers. By dispersing wealth to these stakeholders the corporation allows them to go out into the world and advance their values through religious, political, and social institutions. This corporation operates at the ethical level of social responsibility.
36.The categories of social responsibility for a company are economic, legal, ethical, and discretionary.
37.All four areas of social responsibility for companies (economic, legal, ethical, and discretionary) share equal importance in a company’s overall level of social responsibility.
38.Companies will always be considered unethical if they do not perform their discretionary responsibilities.
39.A company using a reactive strategy to respond to demands for social responsibility will do less than society expects.
40.A company using an accommodative strategy will admit responsibility for a problem but will do the least required to meet society’s expectations.
41.With regard to the question, “Does it pay to be socially responsible?” research has clearly demonstrated that there is no inherent relationship between social responsibility and economic performance of a company.