Stakeholder Theory Goal to maintain the benefits of the free market while

Stakeholder theory goal to maintain the benefits of

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Stakeholder Theory Goal : to maintain the benefits of the free market while minimizing the potential ethical problems created by capitalism (Phillips, Wharton School) Primary difference from Classical Theory: elevation of nonshareholding interests to the level of shareholder interests in formulating business strategy and policy.
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Stakeholder Theory Stakeholder : an individual or group, inside or outside the organization, who has a meaningful stake in its performance. Who are the stakeholders of a business? Narrow view vs. Wide View
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Stakeholder Theory Some Possible Stakeholders of a Business: Customers Department/Employees Owners/Shareholders Creditors Suppliers Distributors Competitors
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Stakeholder Theory Some Additional Possible Stakeholders: Local Community National Citizens Global Inhabitants Non-Human Life the Environment
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Stakeholder Theory Corporate citizenship: the extent to which a business meets its responsibilities, to its various stakeholders, or to society at large.
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Stakeholder Theory Problems with wider view? Discourages Investment - Undermines/Dilutes shareholder property rights Interest Group Politics - Leads to waste and inefficiency
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Corporate Social Responsibility Theory Definition: A voluntary assumption of responsibilities, beyond the legal and economic, that take into account moral/ethical/socially desirable goals and outcomes. Concept originated in the 1950’s and began to gain a significant following in the 1960”s.
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Corporate Social Responsibility Theory Possible Examples Merck: moved to develop Mectizan, a drug that would treat river blindness, a disease that primarily affected the poor. Merck knew that it would cost millions to develop and that they would most likely not realize a direct profit from the effort. But this resulted in a public relations windfall!
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Corporate Social Responsibility Theory Merck’s project was followed by: Pfizer: initiated a project to eliminate the eye disease trachoma.
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Corporate Social Responsibility Theory SmithKline Beecham (Now Glaxo SmithKline): developed a drug to eliminate lymphatic filariasis. GlaxoSmithKline has also announced that it intends to launch a new drug to tackle a virulent form of Malaria in sub- Saharan Africa. The company announced that Lapdap will be made available at a cost of $0.29 per adult and half that amount for children, and will treat plasmodium falciparum malaria, the most life-threatening malaria parasite, which kills between one and two million people every year.
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Corporate Social Responsibility Theory Proctor & Gamble: developed a special nutrient product to address malnutrition.
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Corporate Social Responsibility Theory BP: gave solar powered refrigerators to doctors in Zambia to store malaria vaccines.
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Corporate Social Responsibility Theory UPS: was a key actor in delivering humanitarian aid to Kosovo.
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Corporate Social Responsibility Theory Intel: provides education in science & math in countries where it has plants.
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Corporate Social Responsibility Theory Citigroup: has provided significant funds to microcredit ventures.
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  • Summer '16
  • DWI MARTANI
  • Business, Ethics, moral principles, Responsibility Theory

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