A stakeholder is any individual or group whose interests affect or are affected by the operations of a business . To have a stake simply means that one's interests intersect with those of the business.
Why are stakeholders important in ethics?
Ethics affects every individual, from business owners, executives, and employees to suppliers, customers, and competitors. A stronger ethical environment leads to better interactions with those inside and outside the organization . ... And better interactions lead to better results.
Who are the stakeholders in ethics?
A little over 30 years ago, another ethics scholar, Ed Freeman, defined a stakeholder as any group or individual who can affect or is affected by an organization . Stakeholder groups include, for example, communities, customers, employees, the environment, financiers (e.g., shareholders), governments, and suppliers.
What is stakeholder theory in ethics?
Stakeholder Theory is a view of capitalism that stresses the interconnected relationships between a business and its customers, suppliers, employees, investors, communities and others who have a stake in the organization. The theory argues that a firm should create value for all stakeholders, not just shareholders .
What is the relationship between ethics and stakeholders?
The relationship between ethical business leaders and the stakeholders in their business is that the ethical business leader treats all stakeholders as if they are important and takes their needs into account . The ethical business leader does not lead simply for the sake of one set of stakeholders while abusing others.
How do you identify stakeholders?
Put simply, if someone has any interest in or is affected by your project , they are your stakeholder. Examples of stakeholders include the project manager, project sponsor, higher management, and team members.
What are the four types of stakeholders?
- #1 Customers. Stake: Product/service quality and value. ...
- #2 Employees. Stake: Employment income and safety. ...
- #3 Investors. Stake: Financial returns. ...
- #4 Suppliers and Vendors. Stake: Revenues and safety. ...
- #5 Communities. Stake: Health, safety, economic development. ...
- #6 Governments. Stake: Taxes and GDP.
What are the roles and responsibilities of stakeholders?
Stakeholders have legal decision-making rights and may control project scheduling and budgetary issues . Most project stakeholders have responsibilities to businesses that include educating developers, financing projects, creating scheduling parameters and setting milestone dates.
What is meant by stakeholders?
A stakeholder is a party that has an interest in a company and can either affect or be affected by the business . The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers.
Who are the stakeholders in this situation?
Stakeholders are broadly defined as anyone who is impacted by a decision-maker's decision . Some examples of corporate stakeholders would be shareholders, employees, customers, suppliers, financiers, families of employees and the community in which the corporation is located.
What is an example of stakeholder theory?
As an example of how stakeholder theory works, imagine an automobile company that has recently gone public . Naturally, the shareholders want to see their stock values rise, and the company is eager to please those shareholders because they have invested money into the firm.
What is wrong with stakeholder theory?
Most critics, like Teppo, feel that stakeholder theory is vacuous and offers an unrealistic view of how organizations operate . ... In this view, the organization is a shell that can be written upon freely by the various groups that lay claim to the corporation. The firm has very few innate interests.
Why according to stakeholder theory is it in companies best interest?
1. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders? a) If firms only act in their own self-interest employees may feel exploited. ... d) If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support .
Why should stakeholders be involved in decision making?
In making an important or complex business decision, there are key stakeholders that should be involved in decision-making. ... They understand the business issues and needs and/or care about the outcome . In addition they should include key people who can do something to make implementation successful.
What are ethics issues?
Ethical issues occur when a given decision, scenario or activity creates a conflict with a society's moral principles . ... These conflicts are sometimes legally dangerous, since some of the alternatives to solve the issue might breach a particular law.
How does unethical Behaviour affect stakeholders?
Unethical behaviour has serious consequences for both individuals and organizations. You can lose your job and reputation , organizations can lose their credibility, general morale and productivity can decline, or the behaviour can result in significant fines and/or financial loss.
