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.

In what ways does corporate social responsibility (CSR) relate to the shareholder and stakeholder concepts?

Why is it important to understand both the shareholder and stakeholder perspectives in business?