Business Ethics Copyright©2018 Taylor & Francis

Transcript:Business Ethics Copyright©2018 Taylor & Francis:
Business Ethics Copyright©2018 Taylor & Francis Group, an informa business Chapter 4 Stakeholders Preview Business Ethics Insight Read Preview Business Ethics Insight Describe briefly the BP oil spill in the Gulf of Mexico Which groups were affected by the oil spill? Which groups were most affected? What lessons does the oil spill provide regarding who is affected by a company’s actions? What Are Stakeholders? Stakeholder: any group or individual that “can affect or is affected by the achievement of an organization’s objectives” Examples – employees, customers, suppliers, etc. Exhibit 4.1 Typical Stakeholders and Their Needs Exhibit 4.1 (cont.) Typical Stakeholders and Their Needs Stakeholder Categorization and Attributes Primary stakeholders: typically directly linked to a company’s survival and are either impacted or impact companies directly E.g., customers, suppliers, employees, and shareholders Secondary stakeholders: tend to be less directly linked to the company’s survival E.g., media, trade associations, and special-interest groups Which stakeholder group do you believe is most important? Why? Exhibit 4.2 Primary and Secondary Stakeholders Shareholder Attributes: Power, Legitimacy, and Urgency Stakeholder power: refers to the ability of a stakeholder to exert pressures to force a company to make changes to accommodate such pressures Coercive power: involves the use of force, violence or other restraint to force a company to accommodate or respond to their needs E.g., militant groups in the Niger Delta to force oil companies to stop their abusive practices Forms of Stakeholder Power Utilitarian power: refers to the use of financial or other monetary means to force a company to accommodate a particular stakeholder need Government lawsuit against tobacco companies Normative power: refers to the use of symbolic and other resources to force a company to accommodate stakeholder needs Use of the Internet to launch campaigns against companies Shareholder Attributes: Power, Legitimacy, and Urgency Legitimacy: a company behaves legitimately if it conducts itself in such a way that is consistent with widely held values and beliefs When a company behaves legitimately, it is more likely to be supported by society Shareholder Attributes: Power, Legitimacy, and Urgency Urgency: refers to the degree to which a company needs to respond to stakeholder demands The more urgent the needs, the more quickly a company needs to respond Discussion Questions Read Strategic Ethics Insight on Uber Which group is most affected by Uber? What forms of stakeholder attributes do they possess? Power? Legitimacy? Urgency? Stakeholder Management Stakeholder management: refers to the