L3.pdf - Topic 3 \u2013 Ethical Framework for Business Environment J.W WEISS(2014 Weiss J.W(2014 Business ethics 6th Edition Thompson South-Western Chapter

L3.pdf - Topic 3 – Ethical Framework for Business...

This preview shows page 1 - 10 out of 72 pages.

Topic 3 – Ethical Framework for Business Environment J.W. WEISS (2014) Weiss, J.W.(2014). Business ethics. 6 th Edition, Thompson South-Western
Image of page 1
Chapter topics The Stakeholder Theory Stockholder management versus stakeholder management Stakeholder and issues management approaches Stakeholder management approaches defined How to execute a stakeholder analysis Negotiation methods: Resolving stakeholder disputes Stakeholder approach and ethical reasoning Issues management, stakeholder approach and ethics: Integrity framework 201905-UKML3043 BECG-LYW 2
Image of page 2
The Dynamic Environment of Business The external environment of business is dynamic and ever changing The purpose of the firm is not simply to make a profit, but to create value for ALL its stakeholders – a successful business must meet both its economic and social objectives Six dynamic forces powerfully shape the business and society relationship: Changing societal expectations Growing emphasis on ethical reasoning and actions Globalization Evolving government regulations and business response Dynamic natural environment Explosion of new technology and innovation Business & its Stakeholders 201905-UKML3043 BECG-LYW 3
Image of page 3
Stake A stake is any interest, share, or claim that a group or individual has in the outcome of a corporation’s policies, procedures, or actions toward others. 201905-UKML3043 BECG-LYW 4
Image of page 4
Stakeholders Stakeholders can be broadly categorised into three (3) groups: Internal – Employees, Managers, Directors Connected - Shareholders, Customers, Suppliers, Financial Providers External – Government, Community, Pressure Group, Trade Unions What are their expectations? 201905-UKML3043 BECG-LYW 5
Image of page 5
Stakeholder Participation gives people some say over how policies or projects may affect their lives is essential for sustainability generates a sense of ownership (if initiated early in the development process) provides opportunities for learning for both the policy or project team and for the stakeholders themselves builds capacity and leads to responsibility. 201905-UKML3043 BECG-LYW 6
Image of page 6
Agency relationship Involve an agent and a principal. [T]he fiduciary relation which results from the manifestation of consent by one person to another that the other person shall act in his behalf and is subject to his control; and consent by the other so to act. A duty arising from the trust and confidence placed in a fiduciary by those on whose behalf and for whose benefit he or she acts. 201905-UKML3043 BECG-LYW 7
Image of page 7
Stakeholder Model Extended the concept of agency relationship to include stakeholders of the company Firm’s actions and decisions have impacts on stakeholders The impacts on stakeholders can be large and dangerous. Hence, the company via its managers and BOD should discharge accountability to a broad range of stakeholders 201905-UKML3043 BECG-LYW 8
Image of page 8
Stakeholder Model Companies should have broader mission of management by sharing control rights between shareholders and various stakeholders
Image of page 9
Image of page 10

You've reached the end of your free preview.

Want to read all 72 pages?

  • Fall '18
  • Dr Bernard

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes