Srikandi Bulan Maharani 1852132007

Nur Aulia Yusbih 1852132010

Afifah Aprianty Syamhar 1852132028

BE A 18

Questions of Stakeholder Relationship and Social Responsibility

(Chapter 2)

1. How should Demarco approach this issue when he meets with the tribal leaders?

Answer: The books states, “ In a business context, customers, shareholders,

employees. Suppliers, government agencies, communities, and many others who
have a “stake” or claim in some aspect of a comapany’s products, operations,
markets, industry, and outcomes are known as stakeholders”. (Pg:30) under the
definition provided, Demarco must understand that he and the tribe are both
stakeholders. Therefore, Demarco should approach the issue with business
ethics. Business ethics is defined in the book as, “comprises principles and
values that meet the expectations of stakeholders”. (pg:37) Furthermore,
Demarco should stay very ethical and honest with both stakeholders in the
situations.

2. What should be the priorities in balancing the various stakeholder interests?

Answer: The priorities in balancing the various stakeholders’ inerests should

start with the primary stakeholders. The book defines primary stakeholders as, “
those who’s continued association and resources are absolutely necessary for a
firms survival”. (pg:32) therefore, the priorities should be balanced among the
primary stakeholders.

3. Can the CEO and board of directors of Xeon continue operations and maintain a
stakeholder orientation?

Answer: Yes, a company CEO and Board of Directors can continue operations
and maintain a stakeholder orientation. The book states a stakeholders
orientation involves “activities and processes within a system of social
institutions that facilitie and maintan value through exchange relationship with
multiple stakeholders.” (pg:33) therefore, the responsibilities that fall on the
CEO and Board of Directors would certainly include.