Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Shareholders often tend to be biased in decision making, as they are aware that their wealth can be put at serious risk if they perform a wrong move. In contrast, stakeholders are more likely to behave objectively when they know that their decisions will not necessarily affect their social position. Thus, stakeholders can behave more ethically than shareholders, but the downside on this is that the former have more chances of performing mistakes, as they know that the risks involved in most conditions that they encounter are lesser on their side.
In particular situations, stakeholders can feel more inclined to behave unethically, as they know that the risks involved are not decisive on their part while the profits will pay off. Shareholders, on the contrary, might feel that it would be safer for them to behave ethically, as they will only profit if all the other stakeholders will. Thus, shareholders act based on the theory that they protect their own interests by protecting the interests of all the other stakeholders involved. Moreover, shareholders can look after the interested of other stakeholders because of their certainty that their efforts will pay of sooner or later.
V: Why some believe that ethical behavior is essential for the benefit of business
A sacrifice made by a shareholder at a certain moment can materialize into profits,...
Henry Ford's solution when he realized that people did not have enough money to buy the cars he produced seemed to be irrational and unethical at the time when he came up with it. However, the fact that he decided to pay his employees more money eventually proved to be beneficial for all stakeholders involved in the Ford Corporation, as people gained enough money to buy cars and the company gained more customers.
One of the best solutions to incorporate ethics into business would be for individuals to combine moral principles with profits in their practices, in an attempt to please all stakeholders, ranging from customers to shareholders. An action performed by a community in particular can have a lesser or a more intense effect on all stakeholders that are part of the respective community.
Works cited:
1. Klein, Linda S. "Ethical Decision Making in a Business Environment," Review of Business 13.3 (1991).
2. Sauer, Wolfgang "Also a Concrete Self-Interest," UN Chronicle Sept.-Nov. 2002.
Linda S. Klein, "Ethical Decision Making in a Business Environment," Review of Business 13.3 (1991).
Wolfgang Sauer, "Also a Concrete Self-Interest," UN Chronicle Sept.-Nov. 2002.
Works cited:
1. Klein, Linda S. "Ethical Decision Making in a Business Environment," Review of Business 13.3 (1991).
2. Sauer, Wolfgang "Also a Concrete Self-Interest," UN Chronicle Sept.-Nov. 2002.
Linda S. Klein, "Ethical Decision Making in a Business Environment," Review of Business 13.3 (1991).
Wolfgang Sauer, "Also a Concrete Self-Interest," UN Chronicle Sept.-Nov. 2002.
Ethical Egoism & Abortion Ethical egoism, as a philosophical position, holds that it is an ethical obligation for people to act in their own self-interest. How does this philosophical position deal with the debate over the morality of abortion? It is necessary, before beginning a closer analysis, to define our terms. Abortion is a hotly contested issue, but our sense of ethics here needs to be understood first as distinct from
The more experience a facilitator has with a minority group, the greater the likelihood the facilitator will be able to help those members feel included, rather than excluded from the group process. This is critical, because inclusion is an important social phenomenon. "Communities who are strong and inclusive lead to better quality of life, stronger sense of identity and belonging, sharing mutual respect and equality. It is further recognised
Ethical Dilemmas & Marketing Ethical Dilemmas Ethical dilemmas in international marketing Background of Marketing Ethics Ethical Issues in Marketing Modern Debate in Stakeholder Theory Ethical Theories Teleological Theories Virtue Ethics Ethics in Marketing Ethical dilemmas in international marketing Humanity has long struggled with the question of what constitutes ethical behavior. The answer to this question has not always been simple or easy especially in the midst of conflicting interests. Businesses desire and need to sell products to consumers but serious issues
Ethical Leadership Given the recent crash on Wall Street and the housing market symbolized by corrupt financiers like Bernard Madoff, ethical and moral leadership of corporations has become a major issue for those who study the American capitalist system. In reality, such concerns about the lack of morality in business, government and society as a while has increased significantly in the last thirty years, which undoubtedly has been an era that
Ethical Dilemmas in Special Education The ethical issues involved in special education are manifold. In many cases, the students are unable to perform certain activities unimpaired, and in many cases they will not ever attain a legal majority or emancipation. This already puts the educator in a more proprietary position than the mere invocation of in loco parentis could ever hope to capture. Yet this seems to point toward a greater degree
Ethical leadership is required to stop the 'Planned Obsolescence' principle in Consumer Product Design and Development This paper attempts to identify and explain the issue of 'Planned Obsolescence' and whether the ethical leadership can help eradicate it from consumer perspective. Ethical decision making model developed by Winter (1992b) and Corporate Social Responsibility model developed by Carroll (1991) will be used as the theoretical foundation for this paper. Survey method will be