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the organization, for instance, then acts resulting from such loyalty might not meet the conditions of deontology. Either the supervisor or the company would be treated as a means rather than an end. Although the qualitative or humanizing element of Kantian ethics has broad appeal, it runs into limitations in an actu...
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Note 7 smartphones started exploding due to faulty batteries and casings. Initially, the company denied there were any technical problems. Then, when it became obvious the exploding phones posed a safety and health threat (they were banned from airplanes), Samsung accused its suppliers of creating the problem. In re...
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the ethically responsible thing. Although some might argue the company could have done far more and much more quickly, perhaps it still acted in accordance with the categorical imperative. What do you think? Critical Thinking • How might the categorical imperative become a part of organizational culture? Could it e...
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concern. John Rawls (1921–2002) wanted to change the debate that had prevailed throughout the 1960s and 1970s in the West about how to maximize wealth for everyone. He sought not to maximize wealth, which was a utilitarian goal, but to establish justice as the criterion by which goods and services were distributed am...
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with remedies to correct it. This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 2 Ethics from Antiquity to the Present 55 Justice Theory Rawls developed a theory of justice based on the Enlightenment ideas of thinkers like John Locke (1632–1704) and Jean-Jacques Rousseau (1712...
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chaos would result. So people willingly consent to transfer their autonomy to the control of a sovereign so their very lives and property will be secured. Rousseau rejected that view, as did Rawls, who expanded social contract theory to include justice as fairness. In A Theory of Justice (1971), Rawls introduced a un...
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a hypothetical situation in which rational people can arrive at a contractual agreement about how resources are to be distributed in accordance with the principles of justice as fairness. This agreement was intended to reflect not present reality but a desired state of affairs among people in the community. The veil ...
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rights and liberties for everyone, because no one would know, until the veil was lifted, whether they were male, female, rich, poor, tall, short, intelligent, a minority, Roman Catholic, disabled, a veteran, and so on. The five procedural steps, or “conjectures,” are (1) entering into the contract, (2) agreeing unani...
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seen in an educational setting, for example, the university. By matriculating, students enter into a contract that includes basic freedoms such as assembly and speech. Students at a disadvantage (e.g., those burdened with loans, jobs, or other financial constraints) are accommodated as well as possible. The contract ...
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is to have the person slicing the cake take the last piece. This will ensure that everyone gets an equal amount. What is important is an independent standard to determine what is just and a procedure for implementing it.64 56 Chapter 2 Ethics from Antiquity to the Present The Problem of Redistribution Part of Rawl...
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like Jean Valjean’s sister in Les Misérables, utilitarianism would force the baker to give up what he had to satisfy the starving person without taking into account whether the baker had greater debts, a sick spouse requiring medical treatment, or a child with educational loans; in other words, the context of the sit...
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redistribution of material goods and services occurs without regard for historical context or the presumption many share that it inherently is wrong to take the property legally acquired by one and distribute it to another. Rawls has been criticized for promoting the same kind of coercion that can exist in utilitaria...
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Rawls’s principles and steps assume that the way in which the redistribution of goods and services occurs would be agreed upon by people in the community to avoid any fairness issues. But questions remain. For one, Rawls’s justice, like the iconic depiction, is blind and cannot see the circumstances in which goods an...
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are initiative, innovation, and creativity dampened on the part of everyone else? Perhaps the most compelling critic of Rawls in this regard was his colleague at Harvard University, Robert Nozick (1938–2002), who wrote A Theory of Entitlement (1974) as a direct rebuttal of Rawlsian justice theory.66 Nozick argued that...
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requiring unanimity, it avoids the extremes of Bentham’s and Mill’s versions. As a method in ethics, it can be applied in a variety of ways and in multiple disciplines, because it can be adapted to just about any value-laden content. Of course, this raises the question of content versus method in ethics, especially b...
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the community to choose fairly. (attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license) L I N K T O L E A R N I N G The “veil of ignorance” is a central concept in Rawls’s justice theory. What is it? What does it attempt to accomplish? Watch this video on how “ignorance can improve decision-m...
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that is cross-cultural, embraced by different social groups, and understood by nearly everyone. However, what is considered fair depends on a variety of factors, including underlying values and individual characteristics like personality. For instance, not everyone agrees on whether or how diversity ought to be achie...
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fairness—is more accessible to contemporary people than Confucian virtue ethics and more flexible than Kant’s categorical imperative makes it an effective way of dealing with stakeholders and organizational culture. Justice theory may also provide a seamless way of engaging in corporate social responsibility outward...
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they are more directly affected by the lack of it. Fairness, then, is as much part of the job as it is an ongoing process of an ethics system. It no doubt makes for a happier and more productive workforce. An organization dedicated to it can also play a greater role in civic life and the political process, which, in ...
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aged. Given that you know this but are not sure of the details, which conditions would you agree to now so that senior citizens are provided for? Remember that you most likely will join them and experience the effects of what you decide now. You are living behind not a spatial veil of ignorance but a temporal one. C...
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Kant’s unconditional precept that we must “act only according to that maxim whereby you can, at the same time, will that it should become a universal law”; to act on the basis of good will rather than purely self-interested motives and never treat others as means toward an end without consideration of them as ends i...
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harm principle the idea that the only purpose for which the power of the state can rightly be used is to prevent harm to others junzi a person who is gracious, magnanimous, and cultured; a flourishing human being justice as fairness Rawls’s summary of the essence of his theory of justice justice theory the idea...
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contractual agreement about how resources are to be distributed in accordance with the principles of justice as fairness phrónēsis prudence or practical wisdom; the intellectual virtue Aristotle considered most important quan expediency; a practical consideration of the relative rightness of options when consideri...
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veil of ignorance in Rawls’s theory, a condition in which people arrive at the original position imagining they have no identity regarding age, sex, ethnicity, education, income, physical attractiveness, or other characteristics; in this way, they reduce their bias and self-interest virtue ethics an ethical system...
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Aristotle identified two types of virtues: intellectual and moral. Intellectual virtues were acquired through learning and served as guides to behavior by helping the individual discover truth. Moral virtues were acquired through habit and built character by helping someone pursue what is beneficial and avoid what is...
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2.2 Ethical Advice for Nobles and Civil Servants in Ancient China Confucius (551–479 BCE) attempted to revise ancient Chinese traditions and mores to counter the social chaos of his times. His system of virtue ethics emphasized relationships and, when followed faithfully, led to the dao of humanity, that is, true ha...
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in this way, justice allows for wealth creation, investment, and strategic planning as long as everyone fulfills his or her role and acts in accordance with the basic pattern of relationships Confucius identified. 2.3 Comparing the Virtue Ethics of East and West Aristotle and Confucius each constructed an ethical sy...
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Confucius saw this locus in the family, which provided the basic pattern of relationships for personal and professional life. Reason prevailed throughout, as in the cultivation of a more just and humane person. In a business context, reason and control bear directly on management, leadership, and corporate culture. ...
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detrimental. He called this method utilitarianism, because its basic unit, the “util,” acted like a monetary unit. Bentham’s protégé, John Stuart Mill, refined this system to include human rights. His “harm principle” is an outstanding element in his version of utilitarianism. Utilitarianism in business can lead to ...
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61 2.5 Deontology: Ethics as Duty Rejecting dogmatic thinking of all kinds, Kant believed people were not the sum total of reactions to stimuli but complex beings with innate structures of understanding and inborn moral sensitivity. In his view, everyone had a duty to obey a categorical imperative to do the just an...
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remains viable even today and sometimes displays itself in the most compassionate and humane actions that evolving commercial organizations take. 2.6 A Theory of Justice Rawls developed a theory of justice based on social contract theory, holding that the natural state of human beings is freedom, not subjugation to...
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Assessment Questions 1. Which of the following is not an intellectual virtue according to Aristotle? A. B. the basic order of life knowledge C. wisdom D. prudence 2. Deliberative prudence does all the following except ________. A. align ends and means B. encourage prodigality C. avoid conflict D. prevent ra...
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7. The Analects of Confucius ________. A. are similar to Aristotle’s Nicomachean Ethics B. C. D. represent an oral tradition reflect Buddhist ideals codify a system of virtue ethics 8. True or false? Confucian virtue ethics is similar to the Aristotelian version in that both are very practical. 9. True or fals...
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than the end. 14. True or false? Individualism was the greatest value in Confucian ethics. 15. Utilitarianism is a system that ________. A. considers historical conditions B. approaches Aristotelian deliberation C. builds on natural law theory D. attempts to quantify the good 16. In On Liberty, John Stuart Mill...
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This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 2 Ethics from Antiquity to the Present 63 20. Immanuel Kant objected to dogmatism in ________. A. B. religion science C. both A and B D. neither A nor B 21. True or false? Immanuel Kant contended that people often interpre...
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B. moral duty C. D. social contract theory survival of the fittest 26. The “veil of ignorance” ensures which of the following? A. mass delusion B. objectivity C. self-reliance D. Enlightenment reason 27. True or false? John Rawls’s theory of justice is mainly non-Utilitarian. 28. A distinguishing characteri...
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services in society? Endnotes 1. Alfred North Whitehead, Process and Reality. An Essay in Cosmology. Gifford Lectures Delivered in the University of Edinburgh During the Session 2. 1927–1928. (Cambridge, UK: Cambridge University Press, 1929). Robert C. Solomon, “Business and the Humanities: An Aristotelian Approach...
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3. Aristotle, The Nicomachean Ethics, translated by J.A.K. Thomson. (New York: Penguin Books, 2004), 1097b. 4. Aristotle, The Nicomachean Ethics, translated by J.A.K. Thomson. (New York: Penguin Books, 2004), 1169b. 5. Aristotle, The Nicomachean Ethics, translated by J.A.K. Thomson. (New York: Penguin Books, 2004), 112...
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October 18, 2013. http://www.scmp.com/news/world/article/1333894/29-million-trapped-modern-day-slavery-china-30-million-worldwide. 11. Patrick Winn, “Slavery on Thai Fishing Boats Is Straight from the 18th Century,” June 23, 2013. http://www.businessinsider.com/thailand- slavery-fishing-boats-2013-6; Amar Toor, “Socc...
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Chapter 2 Ethics from Antiquity to the Present Paper no. 01/17 (Pamplona: Universidad de Navarra, Facultad de Ciencias Económicas y Empresariales, 2017), 6. https://papers.ssrn.com/ sol3/papers.cfm?abstract_id=2936288.
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16. Huston Smith, ed., “Confucianism” in The World’s Religions. (New York: HarperCollins, 1991), 160. 17. Daryl Koehn, “East Meets West: Toward a Universal Ethic of Virtue for Global Business,” Journal of Business Ethics 116, no. 4 (2013): 712. 18. Huston Smith, ed., “Confucianism,” in The World’s Religions. (New York:...
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(16.1). 24. Huston Smith, ed., “Confucianism” in The World’s Religions. (New York: HarperCollins, 1991), 176. 25. Chichung Huang, The Analects of Confucius: A Literal Translation with Introduction and Notes. (New York: Oxford University Press, 1997), 6. 26. UBS, “You May Be Surprised at Which Country Is Setting an Exa...
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28. Peter R. Woods and David A. Lamond, “What Would Confucius Do?: Confucian Ethics and Self-Regulation in Management,” Journal of Business Ethics 102, no. 4 (2011): 670. 29. Aristotle, The Nicomachean Ethics, translated by J.A.K. Thomson. (New York: Penguin Books, 2004), 1170a. 30. Chichung Huang, The Analects of Co...
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53. 33. Chichung Huang, The Analects of Confucius: A Literal Translation with Introduction and Notes. (New York: Oxford University Press, 1997), 4.5. 34. Chichung Huang, The Analects of Confucius: A Literal Translation with Introduction and Notes. (New York: Oxford University Press, 1997), 15.29. 35. Aristotle, The ...
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colombia (accessed November 7, 2017). 37. R.J.W. Evans and Hartmut Pogge von Strandmann, “1848–1849: A European Revolution?” in The Revolutions in Europe 1848–1849: From Reform to Reaction, eds. R.J.W. Evans, Hartmut Pogge von Strandmann. (Oxford: Oxford University Press, 2000), 1–8. 38. David Armitage, The Declarati...
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Jeremy Bentham, An Introduction to the Principles of Morals and Legislation. (London: Clarendon Press, 1823), 30. the-natural-and-artificial-right-of-property-contrasted. 43. Encyclopedia of Philosophy, s.v. “Coleridge, Samuel Taylor (1772–1834),” (by Michael Moran). http://www.encyclopedia.com/humanities/ 44. ency...
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45. 46. 47. The Stanford Encyclopedia of Philosophy, s.v. “John Stuart Mill. 1. Life,” (by Christopher Macleod). https://plato.stanford.edu/entries/mill/ (accessed November 13, 2017). 48. The Stanford Encyclopedia of Philosophy, s.v. “John Stuart Mill. 1. Life,” (by Christopher Macleod). https://plato.stanford.edu/en...
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52. David Hume, A Treatise of Human Nature, Section I. https://www.gutenberg.org/files/4705/4705-h/4705-h.htm#link2H_4_0042 (accessed 53. 54. November 18, 2017), I. Immanuel Kant, Critique of Practical Reason, I. http://www.gutenberg.org/cache/epub/5683/pg5683-images.html (accessed November 19, 2017). Immanuel Kant,...
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56. Stanford Encyclopedia of Philosophy, s.v. “Deontological Ethics” (by Larry Alexander and Michael Moore). https://plato.stanford.edu/entries/ 57. ethics-deontological/ (accessed November 19, 2017). Immanuel Kant, Critique of Practical Reason, Preface. http://www.gutenberg.org/cache/epub/5683/pg5683-images.html (ac...
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59. Mark D. Faram,“2 Navy Officers Sentenced in ‘Fat Leonard’ Case,” Navy Times, March 7, 2018. https://www.navytimes.com/news/your- navy/2018/03/07/o-6-and-o-5-sentenced-in-fat-leonard-case/ (accessed March 8, 2018); Sarah Ashley O’Brien, “Theranos Founder Elizabeth Holmes Charged With Massive Fraud,” CNN, March 14, 2...
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60. 61. This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 2 Ethics from Antiquity to the Present 65 John Rawls, A Theory of Justice. (Cambridge, MA: Harvard University Press, 2009), 121, 464. John Rawls, A Theory of Justice. (Cambridge, MA: Harvard University Press, 2009), 85....
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Chapter 2 Ethics from Antiquity to the Present This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 3 Defining and Prioritizing Stakeholders Figure 3.1 Starbucks, based in Seattle, Washington, is a company with more than 250,000 employees and locations across the globe. It directly affec...
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3.4 Corporate Social Responsibility (CSR) Introduction In May 2018, in the wake of a global uproar after two black men in a Philadelphia Starbucks were arrested while awaiting a friend, Starbucks closed its approximately eight thousand U.S. stores to conduct racial bias training (Figure 3.1).1 The company also offic...
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and drink distributors; coffee and tea growers; milk producers; urban and suburban communities; local, state, and national governments; more than 300,000 employees and 1,600 institutional investors; and millions of customers.2 The company’s decision to close its U.S. stores for half a day was financially costly, and t...
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• Identify key types of business-stakeholder relationships • Explain why laws do not dictate every ethical responsibility a company may owe key stakeholders • Discuss why stakeholders’ welfare must be at the heart of ethical business decisions Have you ever had a stake in a decision someone else was making? Dependi...
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services to market to turn a profit. These stakeholders include customers, clients, employees, shareholders, communities, the environment, the government, and the media (traditional and social), among others. All stakeholders should be considered essential to a business, but not all have equal priority. Different gro...
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ongoing mission of a business after its founding. It broadly oversees decisions about the mission and direction of the business, the products or services offered, the markets in which the business will operate, and salary and benefits for the senior officers of the organization. The board also sets goals for income a...
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by—another firm. In turn, the CEO hires executives to lead initiatives and carry out procedures in the various functional areas of the business, such as finance, sales and marketing, public relations, manufacturing, quality control, human resources (sometimes called human capital), accounting, and legal compliance. ...
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positive or negative, and referrals. Customers’ perceptions of the business matter, too. Those who learn that a This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 3 Defining and Prioritizing Stakeholders 69 business is not treating employees fairly, for instance, may reconsider ...
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power through regulatory bodies, from federal agencies such as the Environmental Protection Agency to the local planning and zoning boards of the communities in which businesses exist. These latter groups often exercise influence over the physical spaces where businesses work and try to grow (Figure 3.2). Figure 3.2...
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CC BY 2.0) Businesses are responsible to their stakeholders. Every purchase of a product or a service carries with it a sort of promise. Buyers promise that their money or credit is good, and businesses promise a level of quality that will deliver what is advertised. The relationship can quickly get more complex, th...
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to stakeholders is primarily about delivering good products and services, but it is also about communicating and preparing for potential problems, whether from within the company or from external circumstances like a natural disaster. Ethical Responsibilities Often Extend Beyond Legal Requirements We have seen that...
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continues. You might want to repurchase the item or ask a question about a warranty. The store may have collected future marketing data about you and your purchases through its customer loyalty program or your use of a credit card. Samsung, based in South Korea, is a large, multinational corporation that makes a var...
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recall covered almost three million washers, which ranged in price from $450 to $1500. By choosing to spend billions to rectify the problem, Samsung limited its legal exposure to potential lawsuits, settlement of which would likely have far exceeded the refunds it paid. This example demonstrates the weight of the imp...
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situation. An ethical minimum, or the least a company might do that complies with the law, would have been to offer the warning and nothing more. This may have been a defensible position in court, but the warning might not have reached all purchasers of the defective machine and many children could have been hurt. E...
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the value of its customers. C A S E S F R O M T H E R E A L W O R L D Amazon Sets a Demanding Pace on the Job In a visit to an Amazon distribution center, a group of business students and their professors met with the general manager.3 After taking them on an extensive tour of the five-acre facility, the gen...
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filling an order. Those who cannot keep up the pace are usually let go, just as would be those who steal. This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 3 Defining and Prioritizing Stakeholders 71 Critical Thinking • Does the requirement to walk an average of eight or nine ...
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• The center’s general manager may have been exaggerating about the Amazon Pace to impress upon his visitors how quickly and nimbly pickers fill customer orders for the company. If not, however, is such a pace sustainable without the risk of physiological and psychological stress? The law only partly captures the et...
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increased costs of amenities as an investment in retaining employees as long-term stakeholders. Stakeholder loyalty within and outside the firm is essential in sustaining any business venture, no matter how small or large. W H A T W O U L D Y O U D O ? The Social Responsibility of Business There are two oppo...
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of deontological ethics in Ethics from Antiquity to the Present). Thus, the social responsibility of business view is that being responsible to customers, employees, and a host of other stakeholders should be not only a corporate concern but central to a business’s mission. In essence, this view places a premium on ...
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oppositional correspondence between economist Milton Friedman and John Mackey, founder and CEO of Whole Foods (https://openstax.org/l/53WholeFoods) to learn more. One challenge for any organization’s managers is that not all stakeholders agree on where the company should strive to land when it chooses between ethica...
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which earns profit for them in the form of dividends. Lynn Stout, late Professor of Law at Cornell Law School, described the role of shareholder in this way: “Shareholders as a class want companies to be able to treat their stakeholders well, because this encourages employee and customer loyalty . . . Yet individual ...
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their investment even at a cost to other stakeholders. Some may want to extend beyond the legal minimum and seek a long-term perspective on profit maximization, demanding better treatment of stakeholders to maximize future potential value and to do more good than harm. In the long run, stakeholder welfare must be ke...
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3.2 Weighing Stakeholder Claims Learning Objectives By the end of this section, you will be able to: • Explain why stakeholders’ claims vary in importance • Categorize stakeholders to better understand their claims As we saw earlier in this chapter and in Why Ethics Matter, the law only partially captures the ethi...
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and quality goods at competitive prices. Conflicts like this illustrate how complicated prioritizing stakeholder claims can be, particularly when there are ethical pros and cons on both sides. A big box store may offer a This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 3 Defini...
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resources will force its managers to make choices by prioritizing stakeholders’ needs. In this section, we look at ethical ways in which business managers can begin to make those decisions. The Ethical Basis of Stakeholders’ Claims Stakeholder claims vary in their significance for a firm. According to Donaldson and ...
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management and financial outcomes, proposing that appropriate management of stakeholder interests is important and useful because it contributes to a positive bottom line. The normative approach considers stakeholders as ends in themselves rather than simply as means to achieve better financial results. According to...
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ahead of fiscal considerations alone. We can also view these three approaches to stakeholders as occupying levels of increasing comprehensiveness. At the lowest level is the descriptive approach, which merely sets the stage for consideration of stakeholder claims and concerns. The instrumental aspect combines a cons...
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Of course, these are theoretical approaches, and the extent to which any of them is implemented in a given company will vary. But unfortunately, the decision to disconnect from stakeholders is both real and expensive for a corporation. A 2005 survey of customers of 362 companies is demonstrative: “Only 8% of customer...
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feedback while there is time to incorporate it into management decisions. 74 Chapter 3 Defining and Prioritizing Stakeholders L I N K T O L E A R N I N G This article discusses a recent video showing United Airlines removing ticketed, seated passengers from a plane to make room for four of its employees who ne...
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incident? Why? Airlines overbook to ensure that despite any no-shows or cancellations, any given flight will have as many occupied seats as possible, because an unoccupied seat represents lost revenue. In terms of valuing stakeholders, does this strategy make sense to you? Why or why not? A classic example of negat...
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their livelihoods. Of course, the corporation survived that failure, perhaps because it learned the lessons of stakeholder management the hard way. Figure 3.3 This Edsel Pacer was manufactured in 1958, the first year of production of the ill-fated Ford model, which ceased production in November 1959. (credit: modif...
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provoked a controversy among transgender rights groups, and within a few days, Johansson announced she This OpenStax book is available for free at http://cnx.org/content/col25722/1.3 Chapter 3 Defining and Prioritizing Stakeholders 75 had withdrawn from the role.10 “In light of recent ethical questions raised surro...
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Defining Stakeholder Categories To better understand stakeholder theory and, ultimately, manage stakeholder claims and expectations, it may be helpful to take a closer look at categories of stakeholders. One way to categorize stakeholders is by defining their impact. For example, regulatory stakeholders including st...
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Figure 3.4 Grouping stakeholders into meaningful categories according to relationship types allows an organization to prioritize stakeholders’ claims. (attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license) As the Figure 3.4 shows, enabling and functional stakeholders are those active in design, ...
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Stakeholders, in turn, can exert some control and authority by serving on the board of directors, by exercising their power as purchasers, by being elected to public office, or by joining employees’ unions. In many cases, if one stakeholder effects a change in the firm, other stakeholders will be affected. For examp...
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from the company. Although this model of stakeholder relationships is complex, it is useful in understanding the impact of each individual group on the organization as a whole. James E. Grunig, now professor emeritus at University of Maryland, and Todd Hunt, who together developed the organizational linkage model in...
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it. These categories help the organization design its message about a problem and decide how to communicate. Herein lies the ethical significance. If an organization is aware of a problem and the public is not, the organization has an opportunity to communicate and guide the public in recognizing and dealing with it...
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poison in no way connected with the production of the pill. Johnson & Johnson voluntarily removed all Tylenol products from the U.S. marketplace and offered to pay full retail price for any pills returned to the company. This represented about thirty million bottles of capsules worth more than $100 million. (Signifi...
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apprehended, the entire drug industry responded, following Johnson & Johnson’s lead, by introducing tamper-proof containers that warned consumers not to use the product if the packaging appeared in any way compromised. The strong ethical stance taken by Johnson & Johnson executives resulted in immediate action that ...
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Critical Thinking • In its corporate credo, Johnson & Johnson identifies multiple stakeholders: users of its products (output), employees (input), employees’ families (diffused linkage), and the government (enabling linkage). Applying Grunig and Hunt’s theory, do you believe Johnson & Johnson acted as an enlighten...
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something like a mission statement. Read the Johnson & Johnson credo (https://openstax.org/l/ 53J&JCredo) to learn more. On the other hand, a company might try to manage a problem by covering it up or denying it. For example, Volkswagen had data that showed its diesel engine’s emissions exceeded U.S. pollution stand...
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stakeholder relationships was poor and extremely expensive. Once-loyal stakeholders became part of an aware and active public—a group of people united by a common problem and organized for satisfaction, sometimes demanding compensation.14 A challenge for business leaders is to assign appropriate weights to stakeholde...
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clear and direct, such as in the case of a union negotiating for better pay and benefits, or a community trying to lure a corporation to open operations there. Think of the enormous effort communities around the world make to try to get the Olympics or World Cup organizers to bring the competition to their locale. In...
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can immediately understand this stakeholder relationship, because it is so difficult to find someone with enough authority to make a decision on behalf of the company. Some companies count on individuals’ growing frustrated and giving up on the claim. An indirect stakeholder claim might also be one that affects futu...
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L I N K T O L E A R N I N G Try playing a game of stakeholder identification, mapping, and analysis, such as this one from the “Gamestorming” website (https://openstax.org/l/53Gamestorming) to learn more. 3.3 Ethical Decision-Making and Prioritizing Stakeholders Learning Objectives By the end of this section, ...
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can manage them effectively, is therefore to define and prioritize stakeholders significant to the firm. Then, it must consider their claims. Given that there are numerous types of stakeholders, how do managers balance these claims? Ethically, no group should be treated better than another, and managers should respo...
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generally wish to see a high return on their purchase of company shares. If, on the other hand, they are employees, they typically hope for interesting tasks, a safe work environment, job security, and rewarding pay and benefits. If, yet again, the stakeholders are members of the community surrounding a business, the...
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helps to actively gather information about all key stakeholders and their claims. First, managers must establish that an individual with a concern is a member of a stakeholder group. For example, a brand may attract hundreds or thousands of mentions on Twitter each day. Which ones should be taken seriously as repres...
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company needs from the stakeholder. This simply helps clarify the relationship. If nothing is needed immediately or for the foreseeable future, this does not mean the stakeholder group does not matter, but it can be a good indication that the stakeholder need not be prioritized at the moment. Note that managers are ...
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