Stakeholder Theory

“It’s Good Business,” by Robert Solomon presents the concept of ethics within the business world, and argues against greed and amoral thinking, as being inherent in business. This paper will address seven questions presented by Shaw and Barry (2016) using Solomon’s reading as a backdrop to explore how and why ethical errors occur within business; whether the “myth of amoral business” exists; and, whether unethical behavior hurts business as a whole

Leaders must also foster a supportive culture that encourages employees to report ethical concerns without fear of retaliation (Maldonado et al., 2021). Regularly recognizing and rewarding ethical behavior further reinforces its

Maintaining ethical standards at work can be challenging, particularly if 'good' people are surrounded by people who are not doing the same. I think there are several reasons that may lead to "good" people sometimes engage in unethical activities. The first reason of 'good' people sometimes engage in unethical activities in business is that people always obedience to authority. For example, the Milgram experiment, Ordinary people are likely to follow orders given by an authority figure, even to the extent of killing an innocent human being.

In the face of such cultural pressures, employees may be hesitant to raise ethical issues for fear of retaliation. Leadership and environmental arrangements to encourage ethical behavior -To foster ethical behavior within an organization, leaders must constantly demonstrate ethical behavior in their actions and decisions. Leaders should encourage a culture shift that prioritizes ethical values over performance indicators. - Promote awareness and understanding of the importance of ethics, values, and the potential impact of ethical behavior through transparent communication and regular learning sessions. - Reinforce employees' commitment to the organization's ethical behavior with appropriate

Employee Support and Development: Leaders should invest in employee training programs that focus on ethical decision-making and provide resources to help employees navigate ethical dilemmas. By empowering employees and emphasizing the importance of ethical conduct, leaders can shape a culture of integrity. Addressing Issues and Designing Ethical Systems: Wells Fargo had an ethics hotline in place to report unethical behavior, but it failed to effectively address the issues within the organization. Several factors may have contributed to its ineffectiveness: 1. Fear of Retaliation: Employees might have been reluctant to report unethical behavior due to fears of retaliation or negative consequences for their careers.

If I were the CEO of Wal-Mart, I will ensure high ethical employee behaviour. Every level of management and non-management employees must fully understand the ethical implications of their decisions as it relates to their personal and professional values. Corporations need to implement a Business Code of Ethics and review with all employees. Also, an excellent tool for learning is case studies and role-playing. The key in this learning is to make the Code accessible and position it as a helpful tool for all employees.

The Stakeholder Salience Theory, created by Mitchell, Agle and Wood, are based upon the combination of the three relationship attributes to generate general types of stakeholders. These attributes include: Power; Legitimacy; Urgency. “Stakeholder salience” is defined as the degree to which managers give priority to competing stakeholder claims. Therefore if a stakeholder consist of all three attributes, he/she/it will be of most importance and will have more rights and privileges than a stakeholder that consists of only one of the three attributes. As seen in the picture on the right, you can differentiate between the different types of stakeholders, according to where they get placed given the attributes they consist of.

The implementation and education of the ethical decision-making model promote moral awareness and company values that can mitigate ethical dilemmas to an extent. The aftermath was devastating for Wells Fargo not just economically but for its image. The corporation can introduce this model in training courses for new hires and current employees. Also ensuring management comprehends the prominence of ethical decisions and are aware that they are the wheels of the car, therefore, lead by example. If the corporation initially had prioritized ethical values and decision-making evaluations at every level of the business, this scandal could have been prevented at least its magnitude.

Section 1: Introduction and situational analysis: In the world of business ethics, there are certain examples and scenarios that have become a commonplace for teaching aids. In the case of Enron and its eventual downfall from a perceived highly ethical and successful company. Enron was once ranked the sixth largest energy company in the world. At the height of its success, Enron seemed to be an outstanding corporate citizen, with all the social wellbeing and business ethics tools and status symbols in place (Brinkman, 2003, p. 244). However, due to a deep culture of rewarding clever strategies to bend, break laws and codes, the company eventually collapsed and filed for bankruptcy.

Having an understanding to ethical consideration and accountability will improve customer satisfaction, employee performance, and the continuum for accountability ("Ethical Leadership: Fostering An Ethical Environment And Culture",

Introduction This case study explores the acquisition of the Body Shop, which is one of the largest franchise cosmetics companies in the world, by L’Oreal. The main concentration of the case study aims at investigating the impact on business ethics and corporate social responsibility by the concentricity of the Body Shop and L’Oreal and how the general attitude and buying behaviour is distorted in the course of this acquisition. L‘Oreal being the big conglomerate in the cosmetics industry acquired the Body Shop International which is comparably small but having iconic brand of environmental and socially responsible concerns, on 17 March 2006, through a covenant of $1.2 billion. The combination of two brands in a newly formed conglomerate implies a combination of values, principles and associations that might affect a company’s appeal. The verity that L 'Oreal 's acquisition of the Body Shop provides plenty of potential growth opportunities is undeniable; nevertheless the question of how well the acquisition sits in the group of the world 's largest cosmetics company is another matter.

Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.

“Ethics”, in an organizational context, comprises a set of behavioral standards, expressed as norms, principles, procedural guides, or rules of behavior, defining what is appropriate (right) and inappropriate(wrong). Grounded in a system of values and moral principles, these behavioral

Business ethics also referred to as corporate ethics can be considered as either a form of applied ethics or professional ethics. Its purpose is to analyse ethical principles and also moral as well as the ethical problems that might arise in a business environment. Business ethic is applicable to all parts of business conduct and also takes into consideration the conduct of individuals and the business organizations as a whole. Business ethics can be divided into normative and descriptive discipline. For the purpose of this assignment, the Nestle Company has been chosen.

The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure. The key factors that make business ethics is important at the quarter of the 20th century are corporate social responsibility, corporate governance, and globalized economy. The culture of an organization, or else we can call it as the philosophy of an organization which is related with ethics have a great relationship with the performance of a business in long and short term. As a business is manage by human being, the people who manage a business