Premium Essay

Pleasing Stakeholders While Remaining Ethical

In: Business and Management

Submitted By abran050
Words 1187
Pages 5
Pleasing Stakeholders While Remaining Ethical
Introduction
Ethical Responsibility
Being ethically responsible is important because people want to know that the business they are working for or with is trustworthy. The ethical responsibilities that businesses have are to their employees, customers and society as a whole (Mack, 2013). Managers have to keep in mind who their audience is depending on where they come from, some behaviors can be considered ethical in the United States, but unethical in another country.
Discussion Content
Stakeholders’ Impact on Decision-Making A Stakeholder is a person or a group of people who has an interest or involvement in a business. Stakeholders can be customers, investors, or employees. Stakeholders impact decision making by expanding profits and building up the value of the company (Robbins & Coulter, 2007). When you take into account the several different types of stakeholders, you realize that they have a great impact on decision making. Some of the stakeholders are: 1. Customers – Is a stakeholder group that has the most impact in business’ decision-making process. Let’s face it, without customers or clients, there will be no business. So managers should ensure they maintain an open, honest, and transparent communication with this group (Kokemuller, 2013). 2. Communities – The decisions managers make in their organizations can directly affect the community that surrounds it. Organizations should also partake in the local events and give to the charities within the community in order to gain cohesion, as well as, the potential for lastingness based on public support (Kokemuller, 2013). 3. Employees – In the early 21st century, employees became recognized as stakeholders. Managers who make a conscious effort to treat their employees amiably usually results in loyal and committed employees (Kokemuller,…...

Similar Documents

Premium Essay

To What Extent Can Global Food Production Meet the Demands of Today and Tomorrow Whilst Remaining Sustainable and Ethical

...To what extent can global food production meet the demands of today and tomorrow whilst remaining sustainable and ethical? In the first half of this century, agriculture will have to face several challenges. Currently food production can meet the whole worlds population needs, except it is not distributed fairly. World population is expected to soar by 34% to reach 9.1 billion by 2050, with the entire 2.3 billion rises to take place in the developing countries. Furthermore, not only will population growth take place entirely in developing countries but also it will occur mostly in urban areas that will swell by 86% or nearly 3 billion people while rural populations shrink by 18%. The combined effect of population growth, high-income growth and urbanization, with the shifts in diet structures towards more nutritious and higher quality foods, is expected to result in almost the doubling of demand for food, feed and fibre. There could be a few solutions for these issues, but the question is asked if they are both sustainable and ethical. Because of this increase in demand, natural resources such as land, water and biodiversity, will become more and more scarce because of increasing pressures. This means that a smaller rural workforce will have to produce more and better from fewer resources to meet future demand. In addition to the growing resource scarcity, global agriculture will have to cope with the effects of climate change, notably higher temperatures, greater rainfall......

Words: 954 - Pages: 4

Free Essay

Stakeholder

...Final Examination : Essay Question 1. “Critically analyse the CSR concept using examples from what you have read” ‘Corporate Social Responsibility’, abbreviated to CSR, is the concept that businesses have a social responsibility towards society that encompasses economic, legal, ethical and discretionary expectations. It goes on to highlight how a company can be deemed a ‘corporate citizen’ only if they fulfill the economic, legal, ethical and philanthropic expectations of their stakeholders, and involves corporate social responsiveness (the methods of achieving social issue objectives) as well as corporate social performance (the end result). This essay shall attempt to critically analyse the CSR concept by weighing in the advantages against the disadvantages and reaching a balanced conclusion. One of the advantages of corporate social responsibility is business involvement: by addressing social issues, businesses can be a part of the solution and hence lead society. However, businesses may not be well equipped to be handling social issues especially on a larger scale, as was the case with Exxon Valdez. When the Exxon Valdez oil spill occurred, the company could not handle the situation on it’s own – it required the help of various other entities such as governments and NGO’s to clean the mess it made. Another advantage of corporate social responsibility is the fact that it wards off future government intervention. If a company engages in CSR effectively, then......

Words: 583 - Pages: 3

Premium Essay

Business and Stakeholders Analysis

...BUSINESS ETHICS AND STAKEHOLDER ANALYSIS Kenneth E. Goodpaster Abstract: Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethica] management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of the areas. But it is only one. Peter Dnicker, 1988 Harvard Business Review W HAT is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. One approach to answering such questions that has become popular......

Words: 7650 - Pages: 31

Premium Essay

Stakeholder Analysis

...passage of two laws about anti-illegal immigrant and the Intensive Probation Act that will increase opportunities to do business with the federal government. As a manager at Private Prison Corporation of America, I will conduct a stakeholder analysis to determine whether PPA should do it, and my analysis bases on the frameworks Managing for Stakeholders by Freeman, The social Responsibility of Business by Milton Friedman, Ethical Reasoning by Sucher, Five Traditionnal Theories of Moral Reasoning by Werhane, and How to make value count by Joel E. Urbany. The stakeholders of Private Prison Corporation are board of director, corrections officers, offenders, probation and parole officers. Those are employees in corporation. Another, government agency would contract with a provider to supply a service such as health care or programming for inmates. In general, the decision of corporation affects people in many different ways, so as a manager, I have to analyze carefully in order to make an appropriate decision. The first theory that I apply to analyze, is Milton Friedman’ article. Friedman said that the business would be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom. In private prison case, Friedman would consider about the fact that the contracts with governmental entity guarantee a certain occupancy rate of approximately 80% and for a financial penalty if they fail to......

Words: 1344 - Pages: 6

Premium Essay

The Stakeholders

...TASK 2 Stakeholders To comprehend who your organization's stakeholders are, partition individuals influenced by your organization into three gatherings: inward, outside and joined stakeholders. Inward stakeholders are the individuals who own or work at the organization, including accomplices, board parts and workers. Outer stakeholders are those influenced by the execution of a business, including the nearby city government, group occupants, not-for-profits a business backer or gives to and the exchange media. Associated stakeholders incorporate shareholders, merchants, suppliers, retailers, foremen, clients, wholesalers, deals reps and wholesalers. Internal Stakeholders The execution of a business straightforwardly influences the wallets of inside stakeholders, and administration must consider the budgetary impacts of its exercises on this gathering. Poor choices harm benefit, which decreases a holder's advantage, workers' chances for raises, rewards and expanded assets, board parts' risk and accomplices' workloads. A manager must consider the response of his staff before he expands working hours, passes the work of an ended representative onto remaining staff, lessens profits, finishes working from home or takes different activities that change his staff's circumstance. Board parts give administration expansive objectives and systems and oblige the organization's authority to run key choices by them, including those concerning money related objectives, brand......

Words: 1921 - Pages: 8

Free Essay

Environmental Theories and Ethical Positions of Stakeholders

...There are also ethical issues that arise from animals being treated as human beings instead of as animals. The first of these is that animals may or may not possess the same cognitive abilities of humans. According to Barlow (2013), “There are a million species of animals. I have studied fewer than a dozen. Based on my research and discussions with scientists, it appears likely that at least some great apes, cetaceans, and elephants possess cognitive abilities that the Nonhuman Rights Project believes are sufficient for legal personhood. “ Because of this, it would be hard to argue that an animal can be treated as a human when they do not have the same understanding ability as a human. Another ethical issue that may arise is that medical research can be hindered due to the release of animals from captivity. “Critics say legal personhood for animals is misguided, and even dangerous. They foresee a slippery slope in which a tightening web of rights starts to cripple scientific progress not just on life-saving medical research, but also on such goals as species conservation. Even within the animal-rights movement, the idea is controversial,” per Berdik (2013). These theories and ethics issues have been influenced by the fact that the animals needed to be treated as animals and not as humans because they are different from humans and do not have the same cognitive abilities or ways of understanding that humans do. The responsibilities that arise from the ethical issues that......

Words: 453 - Pages: 2

Premium Essay

Stakeholders

...World Market Strategies for Drugs to Fight Aids Jérôme Dumoulin, Yves-Antoine Flori, Philippe Vinard, Thomas Borel Key words: AIDS; drugs; price; developing countries. Abstract Faced with a situation where the market is unstable and the political context is crucial, we propose a three-part analysis. In the first part, an overview of the chronology of the main events shows that the evolution of the price of ARVs is interlinked with numerous issues of pharmaceutical patent rights. In the second part, we analyse the positions of stakeholders: how they behave in the market and influence market regulations. In the third part, we propose three scenarios which are both simplified interpretations of stakeholders’ strategies and options for the future. The first scenario is the status quo, where prices are high. The second scenario is driven by multinational companies who work to enlarge the markets by price differentiation and product diversification. The third scenario is driven by International Organisations which achieve a political consensus to enlarge access to ARV drugs through broader international financing and a systematic opening of the market to generics. Résumé Face à une situation de marché instable où le contexte politique est primordial, nous proposons une analyse en trois parties. Dans la première partie une esquisse de la chronologie des événements montre que l’évolution des prix des 214 Economics of A I DS and Access to H I V/A I DS Care… ARV......

Words: 12551 - Pages: 51

Free Essay

Environmental Theories and Ethical Positions of Stakeholders

...There are also ethical issues that arise from animals being treated as human beings instead of as animals. The first of these is that animals may or may not possess the same cognitive abilities of humans. According to Barlow (2013), “There are a million species of animals. I have studied fewer than a dozen. Based on my research and discussions with scientists, it appears likely that at least some great apes, cetaceans, and elephants possess cognitive abilities that the Nonhuman Rights Project believes are sufficient for legal personhood. “ Because of this, it would be hard to argue that an animal can be treated as a human when they do not have the same understanding ability as a human. Another ethical issue that may arise is that medical research can be hindered due to the release of animals from captivity. “Critics say legal personhood for animals is misguided, and even dangerous. They foresee a slippery slope in which a tightening web of rights starts to cripple scientific progress not just on life-saving medical research, but also on such goals as species conservation. Even within the animal-rights movement, the idea is controversial,” per Berdik (2013). These theories and ethics issues have been influenced by the fact that the animals needed to be treated as animals and not as humans because they are different from humans and do not have the same cognitive abilities or ways of understanding that humans do. The responsibilities that arise from the ethical issues that......

Words: 452 - Pages: 2

Premium Essay

A Fire in the Global Village: Teaching Ethical Reasoning and Stakeholder Interests Utilizing Tobacco

...A Fire in the Global Village: Teaching Ethical Reasoning and Stakeholder Interests Utilizing Tobacco Lucien J. Dhooge Sue and John Staton Professor of Law Journal of Legal Studies Education Volume 29, Issue 1, pages 95–125, Winter / Spring 2012 [T]is a plague, a mischief, a violent purger of goods, lands, health; hellish, devilish and damned tobacco, the ruin and overthrow of body and soul.( Richard Burton, The Anatomy of Melancholy (1621), quoted in Philip J. Hilts, Smokescreen 185 (1996)) I. Introduction Tobacco has been an agricultural staple from the time of the first recorded European encounter with the plant in the fifteenth century.2 The pervasive nature of its cultivation and consumption has made tobacco one of the most profitable crops in world agricultural history.3 World production is estimated at thirteen billion pounds annually, originating in more than one hundred countries.4 This production has flourished, in part, due to the demand for cigarettes, the leading form of tobacco consumed in the global marketplace. The World Health Organization (WHO) has estimated that 1.2 billion people over the age of fifteen are regular cigarette smokers.5 In developed countries, 35 percent of men and 22 percent of women smoke cigarettes on a regular basis.6 In developing countries, 50 percent of men and 9 percent of women smoke cigarettes on a regular basis.7 Globally, smokers consume 5.5 trillion cigarettes every year, which translates into a consumption rate of one......

Words: 4238 - Pages: 17

Premium Essay

Does Monsanto Maintain an Ethical Culture That Can Effectively Respond to Various Stakeholders?

...maintained an ethical culture and has let down their shareholders many times for much of its history. Monsanto has dealt in controversial products from Agent Orange to pesticides and herbicides. They were harming the environment continuously and consciously. Their products such as Agent Orange used during the war in Vietnam affected people’s health and polluted the environment. They have lost respect for the government and its people. We can start by defining what ethical culture is. According to our book Business Ethics, it is the component of corporate culture that captures the values and norms that an organization defines as appropriate conduct (Ferrell, Fraedrich, Ferrell, 2008). By what we read, around 1960 Monsanto did not have any ethical culture. They were harming the environment consciously, but they did not do anything about it. How to influence others ethical behavior when the head of the company do not do the right things? It was not only environmental damage, it was also decaying people and animals’ health; but despite that, they still kept going. After lost lawsuits, the years went by and several management rotations occurred. Competition and learned lessons helped the enterprise to change its core values. Like all human endeavors, errors will always be present. We cannot judge a multinational company for the bribery issue in Indonesia which involved only few workers. One of the remaining ethical issues and the one that gives pause to stakeholders......

Words: 343 - Pages: 2

Premium Essay

Stakeholder vs Shareholder

...more pressure often comes from the surrounding people such as the employees, suppliers, competitors or even the surrounding community. Stakeholder and shareholder theories have been discussed intensely with each being viewed and exhibited as having both its merits and demerits. While some argue that the stakeholder theory is crucial in management, others fiercely content the notion. The supporters of shareholder theory argue that a business’ primary objective is to gain profits. Conversely, the proponents of the stakeholder approach contest that there are other things a business ought to be in consideration of besides profits. This never-ending debate often leaves business executives in a dilemma for the appropriate management style. Thus, this paper compares and contrasts the merits of the two theories in relation to the company executives’ responsibilities. 2.0 Theories at work 2.1 Decision-making in the stakeholders and shareholders theories. A stakeholder approach to management will help a business executive make the right decision quickly. One thing the stakeholder theory advocates is the inclusion of crucial stakeholders such as employees in a decision-making process. By utilizing this method, a business executive is likely to end up making the right decision because varied opinions are allowed. Employees and suppliers are vital stakeholders in any business, and their input is essential to the enterprise (Mikkelsen, Jacobsen, and Andersen, 2015). In fact, ignoring......

Words: 3493 - Pages: 14

Free Essay

Discuss the Different Ethical Positions That Various Stakeholders Are Taking in the Use of Corporate Funds for Research Into Obesity

...research. Discuss the different ethical positions that various stakeholders are taking in the use of corporate funds for research into obesity This report will first discuss the major stakeholder fast food and Soft Drink Corporation ethical positions in making decision in funding researcher into obesity, Business main motive is to earn profit, most of the businesses are mainly profit motivated, they only care about the income they can earn to sustain and grow, company follow ethical learning and growth, it cares only about itself. Soft drink and fast food has the same motivation of earning profit for which they produces the product that are on major demands or create the demand by making advertisement and other promotional activities to attract people towards their product. To have a successful business support of all stakeholders are required. Funding research for the research is one of the strategies of company to support that. Funding helps in building image in public, which help in generating goodwill for the company at the same time it helps the researcher. A Typology of Stakeholder Attributes: Legitimacy, Power, Urgency How do managers decide which stakeholders deserve their attention? Stakeholders have attributes including legitimacy, power, and urgency. A typology of stakeholders has been developed based on these three attributes.17 When these three attributes are superimposed, as depicted in Figure 3-4, seven stakeholder categories may be seen. The......

Words: 5469 - Pages: 22

Premium Essay

Sole Remaining Supplier Case Study

...“The Case of the Sole Remaining Supplier” demonstrates one of the many instances where individuals must contemplate their moral standards in reflective issues. In the situation disclosed in the case, readers are presented with a layout of facts where they are on the board of directors for a company that makes transistors and supplies them to other companies, one of which includes a business where the transistors are used to make pacemakers. Your company has now become the only remaining supplier of transistors since other companies would not sell to them. Because a company that sells malfunctioning products are held accountable for consequences caused by defects, risk is at hand. Ethical affairs, less clearcut than business issues, consist of the concerns of your contractee. If your company halts supply of transistors to the Pacemaker company, they will have no other source of transistor inventory. Given these details, moral issues arise with your company being the origin of the involuntary shutdown of pacemaker manufacturing, depriving heart patients of their sole option of heart rate normalcy. Essentially, if you terminate your contract with the Pacemaker company, heart patients in need of the pacemaker will die. While business interests simply commend individuals to think economically efficient, morality often comes into play under circumstances as such, validating the disparities between a company’s principles as an object and staff virtues as human beings. With the......

Words: 1306 - Pages: 6

Free Essay

Stakeholder

...Stakeholders, Shareholders and Wealth Maximization V. Sivarama Krishnan, University of Central Oklahoma ABSTRACT This paper attempts reconciliation between the two somewhat extreme views espoused by the shareholder wealth maximization paradigm and the stakeholder theory. The stakeholder theory challenges the basic premise built into corporate finance theory, teaching and practice. Corporate finance theory, teaching and the typically recommended practice are all built on the premise that the primary goal of a corporation should be shareholder wealth value maximization. Extant theoretical and empirical research in financial economics also generally accept shareholder wealth maximization as the normative and ideal goal on which all business decisions should be based. This paradigm assumes that there are no externalities and all the participants engaged in transactions with the firm are voluntary players competing in free, fair and competitive markets. A very different view is offered by what is loosely called stakeholder theory. The stakeholder theory posits that the focus on shareholders and firm value is misplaced and managers should be concerned with all stakeholders of the firm. The paper attempts to address what is felt as a lack of dialogue between the two camps. INTRODUCTION Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a corporation should be the......

Words: 4065 - Pages: 17

Premium Essay

Stakeholders

...Research Paper DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? DOES CORPORATE RESPONSIBILITY TO STAKEHOLDERS MAXIMIZE FIRM’S VALUE? Topic: This paper seeks to explore the economic mechanisms behind corporate responsibility based on a microeconomic perspective of the firm. The ultimate objective is to ruminate on the effects of corporate responsibility of firms to stakeholders. That is how corporate responsibility to stakeholders can help maximize or minimize the firm’s value. In this research paper, I am going to explain the principle of stakeholder and the corporate social Responsibility that corporation owes to its stakeholders. The fact that corporations are entitled to its stakeholders and the environment within its scope of business has been a controversial issue. At the beginning, I will give a clear understanding of what Corporate Responsibility by firms to its stakeholders is. Later, I will make an argument in favor and against Corporate Responsibility by the firm to its stakeholders. Lastly, I will come to a conclusion on how firm’s value is maximized. That is what corporation should do for its stakeholder. According to rigorous research, each person has his or her personal responsibility that needs to be performed in order to maintain a good image in the society. Just as humans are faced with responsibilities, so as Corporations, since they are seen as a group of individuals working together to accomplish a goal, that goal being making...

Words: 1817 - Pages: 8