Summary

Social responsibilities are stakeholder views that a business can operate towards

Stakeholders are anyone who has an interest in the business

By trying to meet the views of different stakeholders businesses are operating in a more socially responsible manner

Business ethics are the shared attitudes and principals shared by a business

Businesses need to ensure that they try and behave in an ethical way as this has a positive impact on society and their employees

Technological change impacts the way businesses operate

Businesses create external costs due to their operation a lot of these costs are environmental e.g. increased pollution

By decreasing the environmental impact of their business a firm is able to decrease their external costs and improve their image

Political change can influence business operation through the creation of new laws or regulations

Pressure groups aim to change business behaviour through direct and indirect actions

Social auditing looks at the businesses social behaviour and impacts