Ethical Awareness The definition of stakeholder is “ Any group or individual who can affect or is affected by the achievement of the organizations objectives.” (Freeman, 1984). Three stakeholders that have been identified are old employees (50s-60s), young employees, and shareholders. These three stakeholders could be affected the most by the CEO’s decision. Firstly, old employees who work for the company for many years should have larger proportion of the company’s employee wage than young employees. For the first option, this option will cause biggest impact for old employees as they already have high monthly salary, however they will have to reduce their wages to be hourly salary and might not be called for work. Furthermore, if old employees want to find new job, these people will have minimal chances to find a new job due to their age. Second option, this option have less impact than first option as their job will steady, but the reduction of wage will affect their quality of life similar to the first option. Third option will benefit for them. They will maintain their job and salary, also “natural wastage” is employee’s choice not by the …show more content…
There are two reasons why should care about ethic in business, which are Self- Interested reasons, and Ethical reasons. Reasons of self-interested such as Reputation, Competitive Advantage, Cost Savings, and Get ahead of changes in the law. Ethical is focusing on the concept of “It is the right things to do!” ( Ellis, 2014). The main reason that B&E company have the problem in this case is that the company overpaid the salary of the employee; on the other hand, the company perform well in the case of diverse staffs, and aid the employees, especially old employees had a good quality of life. The company pays the staffs with living wage, while their competitor pays legally minimum wage to their staff which is lower than B&E staff
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
n this reflective journal entry, we are going to look at that the ethical issues that were presented in the Ethics Game simulations, the decision-making steps that were completed to address ethically the issues, and the ethical lenses that I used to make decisions throughout the simulation. We are also going to take a look at how these different ethical lenses influenced my decision and the how I could use the concepts that I have learned in my workplace.
Imagine living in a state where one is providing service to a client and the client divulged that he admits to wanting to end his ex-girlfriends life but one lives in a state where there is no duty to warn. What does one do in a situation like this? This question comes about due to the Tarasoff v. The University of California Board of Regents case as well as the fact that there is no uniformity in the United States over duty to warn or protect. Some states have permissive statutes while some have an established mandatory duty to warn while very few have no statute at all. According to Doverspike (2007), the APA standard is permissive ("may disclose") rather than mandatory ("shall disclose"). The APA Code of Ethics 4.05 part 3 states that disclosures without consent are is only allowed when mandated by law to protect the client, psychologist, or others from harm (Fisher, 2013, p. 346). How does one protect the confidentiality of a client but also protect others from potential harm? The Tarasoff v. The
Many ethical dilemmas are philosophical in nature, an ethical issue can be described as a problem with no clear resolution. In order to solve the issue or dilemma a consensus between the parties involved must be reached. There are several reasons to come to an agreement over an ethical dilemma, it is the basis for all aspects of personal and professional dealings. Each one of us is part of a civilized society and as such it is our responsibility to be rational, honest and loyal in our dealings with others. (Alakavuklar, 2012) states that individuals make decisions for different situations in business life involving various ethical dilemmas. Each time either consciously or unconsciously individuals may follow some ethical approaches
The process of ethical decision making involves nine steps that include gathering the facts, defining the ethical issues, identifying the affected stakeholders, identifying consequences and the obligations. The other steps also include considering one’s integrity and character, thinking creatively about the actions to be taken, listening to one’s gut, and deciding on proper ethical action to be taken as one prepares to deal with opposing arguments (Ferrell, John & Linda, 130). These steps, when keenly followed, would save us from getting into ethical dilemmas, of which an example of such, is presented in the case study.
To survive in a very turbulent environment management must set direction for the firm. To successfully change direction, management must have the support of those who can affect the firm and understand how the firm will affect others. The stakeholder approach provides no rival to the traditional aim of “maximizing shareholder wealth.” A stakeholder approach rejects the very idea of maximizing a single objective function as a useful way of thinking about management
A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. In “The stakeholder theory of the corporation: Concepts, evidence, and implications” by Thomas Donaldson , he quotes Stanford research institution and calls stake holders “those groups without whose support the organization would cease to exist.”
A stakeholder is “a person, group or organization that has interest or concern in an organization.”
The stakeholder theory also concern on the important on identifying who are stakeholders in a corporation and need to be managed (Freeman, 1984). The stakeholders are shareholders, employees, suppliers and customers.
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Stakeholder is any groups or individuals that are affected by the attainments of the organisation’s goals. [] In this situation Coca-Cola situation we can determine following group of stakeholders. They include local communities, employees, customers, suppliers, competitors, countries, law, and government regulatory parties.
From the definition of stakeholders, they are people that are affected or have an impact or effect on a system or organization. Therefore, for an organization to run effectively, their views and perspectives have to be taken into account. Therefore, anyone who has an impact on a system or is affected by the system either directly or indirectly is referred to as a stakeholder. Since stakeholders have a view or perspective in the running of a system or organization, they can in one way or another affect the day to day running of the organization. It would be important to note that stakeholders are not just people who are can influence or who might be affected by an organization. They also include people who think that they can influence an organization or project, or those who think that a given project may have an impact on them (Fernando, 2009).
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
Everyone in this world has experienced an ethical dilemma in different situations and this may arise between one or more individuals. Ethical dilemma is a situation where people have to make complex decisions and are influenced based on personal interest, social environment or norms, and religious beliefs (“Strategic Leadership”, n.d.). The leaders and managers in the company should set guidelines to ensure employees are aware and have a better chance to solve and make ethical decisions. Employees are also responsible in understanding their ethical obligations in order to maintain a positive work environment. The purpose of this case study is to identify the dilemma and analyze different decisions to find ways on how a person should act