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Palm oil is one of the world's most versatile raw materials. It is estimated that it is an ingredient in 50%50 \% of all products sold by a typical supermarket. It is used in a wide range of products from margarine, cereals, crisps, sweets and baked goods to soaps, washing powders and cosmetics but it is often listed as just 'vegetable oil'. So, its production benefits customers of these products. In addition, an estimated 1.51.5 million small farmers grow the crop in Indonesia, along with about 500000500000 people directly employed in the sector in Malaysia, plus those connected with related industries. The governments of these countries have encouraged production as it is a major export for these economies.

However, the industry has a poor image. Palm oil production has led to deforestation with a resulting negative impact on climate change. There has been substantial loss of wildlife habitat, even endangering the orangutan. Palm oil companies have been accused by community groups of driving native people off their land which is then used for palm oil production. Socially responsible businesses, such as KL Kepong in Malaysia, have agreed to an ethical code which aims to make palm oil production 'sustainable' with fair treatment for all local populations affected by it. However, many companies have been accused of breaking the code as there is no strong world body to stop them behaving irresponsibly. In any case, food manufacturers want to maximise profits and final consumers want the cheapest raw materials possible.

Analyse the impact on these two stakeholder groups of a decision by KL Kepong to close one of its palm oil plantations

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Palm oil is one of the world's most versatile raw materials. It is estimated that it is an ingredient in 50%50 \% of all products sold by a typical supermarket. It is used in a wide range of products from margarine, cereals, crisps, sweets and baked goods to soaps, washing powders and cosmetics but it is often listed as just 'vegetable oil'. So, its production benefits customers of these products. In addition, an estimated 1.51.5 million small farmers grow the crop in Indonesia, along with about 500000500000 people directly employed in the sector in Malaysia, plus those connected with related industries. The governments of these countries have encouraged production as it is a major export for these economies.

However, the industry has a poor image. Palm oil production has led to deforestation with a resulting negative impact on climate change. There has been substantial loss of wildlife habitat, even endangering the orangutan. Palm oil companies have been accused by community groups of driving native people off their land which is then used for palm oil production. Socially responsible businesses, such as KL Kepong in Malaysia, have agreed to an ethical code which aims to make palm oil production 'sustainable' with fair treatment for all local populations affected by it. However, many companies have been accused of breaking the code as there is no strong world body to stop them behaving irresponsibly. In any case, food manufacturers want to maximise profits and final consumers want the cheapest raw materials possible.

Explain the interests of any two of KL Kepong’s stakeholder groups.

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In this question, we are asked to explain the interests of two stakeholder groups of KL Kepong.

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