IGCSE, A Level Business Student Forum

APQ is a multinational company. It makes chemicals that are sold to farmers which help increase the amount of food produced. It plans to open a factory in country X, a developing country with low interest rates. The Finance Director said: ‘This factory will create many external benefits. APQ is a public limited company which tries to act in an ethical way with all its stakeholder groups.' The new factory will cost $100m and there will be an opportunity cost for APQ. The Finance Director cannot decide which source of finance to use for the new factory.

03 Identify two stakeholder groups of APQ. Explain how APQ could act in an ethical way with each stakeholder group. [6]

Possible KN Points:
• Employees/management
• Suppliers
• Community
• Pressure groups
• Government
• Lenders/bank
• Owners/shareholders

KN : Employees want fair pay
APP : APQ could provide safe working conditions in the new factory even fair wages and training of employees.
AN : This shows APQ that they value their workers and it reduces work accidents which increases motivation and helps maintain a good relation with the workers.

KN : The local community would want benefits from the company while avoiding harm such as pollution or disruption.
APP : APQ could act morally by making sure the factory uses sustainable materials to help with limiting the pollution and creating jobs.
AN : This benefits the community which improves APQ's public image and can lead to better relationships with local authorities making the business run smoother with less issues