Ethical Awareness Case Study

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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
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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
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