A Level Economics AQA Practice Exam

What is a significant concern of stakeholders?

1. Only profits of the organization

2. The overall ethical standards of the company

3. The company's public image and reputation

4. Competitive pricing strategies

The correct answer is: The company's public image and reputation

The concern of stakeholders encompasses a range of interests that extend beyond just financial outcomes. Stakeholders, which include employees, customers, suppliers, investors, and the community, are significantly concerned about the company's public image and reputation. This is because a positive public image helps attract customers, retains employees, and can enhance the overall trust of investors and the community. A strong reputation can lead to increased sales and profits, as well as provide a buffer against negative publicity or economic downturns. While profits are certainly a concern for shareholders, they do not represent the full spectrum of issues stakeholders may prioritize. Similarly, the overall ethical standards of the company are critical, but they often tie closely into how the organization is perceived publicly. Competitive pricing strategies are crucial for market performance but do not typically address the broader implications of corporate reputation in the eyes of various stakeholder groups. The public image thus serves as a foundational aspect of stakeholder interests, integrating elements related to ethics, customer loyalty, and overall corporate responsibility.