A-Level Edexcel Business Raising Finance: Evaluate the two aims and recomm

Question

Evaluate the two aims and recommend which is most suitable for a business, such as Unilever.

The stakeholder approach considers that a business should consider all of its stakeholders in its business decisions/objectives. This approach emphasizes that the responsibilities of a business extend beyond merely generating profit for shareholders.

On the other hand, the shareholder approach argues that a business should focus purely on shareholder returns. This perspective underscores that shareholders are the owners of the business and, as such, their interests should take precedence over other stakeholders.

In evaluating these two approaches for Unilever, one must consider the implications of each on the business's long-term success. The stakeholder approach may enhance Unilever’s reputation by reducing its environmental impact and improving its positive social contributions. This can result in attracting ethical investors and loyalty from customers who prioritize sustainability.

Conversely, the shareholder approach could prioritize immediate financial performance, potentially increasing dividends for shareholders. However, it could also lead to neglecting key social and environmental issues, which might sully Unilever's image and sustainability efforts in the long run.

Balancing both approaches is crucial. Ultimately, adopting the stakeholder approach may be more beneficial in building strong relationships with all parties involved, thus ensuring the business thrives in a socially responsible manner.

Evaluate the two aims and recommend which is most suitable for a business, such as Unilever - Edexcel - A-Level Business - Question 2 - 2017 - Paper 2

Worked Solution & Example Answer:Evaluate the two aims and recommend which is most suitable for a business, such as Unilever - Edexcel - A-Level Business - Question 2 - 2017 - Paper 2

Evaluate the two aims

Recommend which is most suitable for a business, such as Unilever

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