Chapter 3 Corporate Social Responsibility and Business Ethics 1. Understand the importance of the stakeholder approach The stakeholder approach is important to ensure that every stakeholder can be given importance and kept satisfied all the time. There has to be empathizing with every stakeholder to find out the needs of the stakeholder. The needs of every stakeholder have to be fulfilled to increase chances of the stakeholder remaining and investing time and money in the organization. 2. Explain the continuum of social responsibility Social responsibility has to be imbibed and practiced so that every organizational member can learn to be accountable for actions committed by the organizational member. There must also be proper ways of identifying mistakes and responsibilities to not harm others in an organization knowingly or even unknowingly. 3. Describe a social audit Social audit is important to ensure that the weaknesses and gaps in maintenance of social responsibility can be identified and eliminated. Auditing of activities is important for ensuring that the activity of every team member can be monitored for security reasons. Auditing can enable finding out of mistakes committed knowingly as well as unknowingly. 4. Discuss the effect of the Sarbanes-Oxley Act The effect of the Sarbanes-Oxley Act is important to be learned to not try to do any kind of fraud in any accounting or financial records. Accounting is important to be learned about for identifying mistakes early. If mistakes in accounting are identified early, there can be no chance of correcting any accounting mistake. There can be enhancement of responsibility in the minds of organizational members by being disciplined.