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Transcription of this question: 4.Perfect PrintingPerfect Printing is a public limited company. The company operates in a neglected residential areaand prints the local weekly newspaper and a monthly magazine. Stakeholders have raised a numberOf issues in recent months:• Some local residents and a local pressure group are concerned about an unacceptable level ofnoiseand pollution during the production process. They are considering legal action.• Workers are dissatisfied with the unacceptable noise and pollution level and also their low salaries.Some are threatening to leave the company.• The local weekly newspaper would prefer the use ofrecycled materials and are threatening to taketheir contract to more socially responsible suppliers despite a higher cost for recycled paper.• Shareholders are unhappy with the low dividend and are threatening to sell their shares if themanagement is not able to overcome the current low level of profit and working capital.The management, which collectively owns 60% Of the shares, wants the company to display moresocial responsibility and proposes the following:• Relocating to an industrial park in a non-residential area. This will, however, result in an increasein rent.Purchasing expensive new machinery, which will enable the use Of recyclable materials.Consequently, the cost of raw materials will fall by 25 % and the noise and pollution level will beconsiderably reduced.• Commissioning social and environmental audits.(a)(b)(c)(d)Define the following terms:(i) stakeholder(ii) social responsibility.Explain three possible sources Of conflict that may arise betweenPerfect Printing stakeholder groups.Analyse the value Of an environmental audit from the perspective Of themanagers Of Perfect PrintingEvaluate the proposal for Perfect Printing to become a socially responsible[2 marks][2 marks][6 marks][6 marks][9 marks]

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