Business Ethics

A Stakeholder and Issues Management Approach

HF 5387 M45 2003

Chapter 1

Business and governments operate in technological, legal, social, economic, and political environments. Understanding the effects of these environmental forces in industries and organizations is a first step in identifying stakeholders and the issues that different groups must manage in order to survive and compete. This book explores and illustrates how stakeholders can manage issues and trends in their changing environment in socially responsible and ethical ways.

Business ethics deals with what is right and wrong in organizational decisions, behavior, and policies. Business ethics provides principles and guidelines that assist people in making informed choice to balance economic interests and social responsibilities.

Chapter 2

Organizations and businesses in the 20^th century increased in complexity and power. Because of the numerous economic and no economic transactions of corporations with different groups in the environment, a method is required to understand an organization’s moral obligations and relationships to its constituencies.

The stakeholder approach provides an analytical method for determining how various constituencies affect and are affected by business activities. The stakeholder model also provides a means for assessing the power, legitimacy, and moral responsibility of managers’ strategies in terms of how they meet the needs and obligations of various stakeholders.

Chapter 3

Complex ethical dilemmas in business situations involve making tough choices among conflicting and competing interests. This chapter begins with 12 questions and three decision criteria that can assist individuals in determining the most suitable course of action. These also can be applied at the group and corporate levels of analysis.