Define the Stakeholder Approach to Social Responsibility

question 113

Essay

Define the stakeholder approach to social responsibility. Provide a key point about each of three different stakeholders in this approach.

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Definitions:

Vertical Relationships

Vertical relationships involve the connections between companies or entities at different stages of the production process, such as suppliers, manufacturers, and retailers.

Upstream Firms

Companies that operate in the early stages of the supply chain, typically involved in the extraction or production of raw materials.

Downstream Firms

Companies positioned at the end stages of supply chains, engaging in the processing or selling of final products to customers.

Market Power

The ability of a company or entity to influence the price and output levels in the market.