Ethical Problems of Organizations Chapter 8

Stakeholders  Stake: An interest or a share in some effort or undertaking. An interest or a share in some effort or undertaking. A claim or a right to something. A claim or a right to something. A demand for something due or something perceived to be due. A demand for something due or something perceived to be due.  Stakeholder: Any individual or group that has one or more stakes in an organization. Any individual or group that has one or more stakes in an organization.

Stakeholders  Primary stakeholders: Those groups or individuals with whom the organization has a formal, contractual relationship. Those groups or individuals with whom the organization has a formal, contractual relationship.  Secondary stakeholders: Other groups or individuals to whom the organization has obligations, but who are not formal, contractual partners. Other groups or individuals to whom the organization has obligations, but who are not formal, contractual partners.

Abraham’s Stakeholder Model  Primary stakeholders: Business partners Business partners Customers Customers Employees Employees  Secondary stakeholders Opinion formers Opinion formers Community Community Authorities Authorities

Ethical Issues  Ethics and Consumers Conflicts of interest Conflicts of interest Product safety Product safety Advertising Advertising  Ethics and Employees Employee safety Employee safety Employee downsizing Employee downsizing

Ethical Issues  Ethics and shareholders  Ethics and the community

 Linda K. Trevino and Katherine A. Nelson, Managing Business Ethics, (Wiley, New Jersey) pp