The purpose of this essay is to critically evaluate the influence of stakeholders on encouraging responsible business practices. This essay will look in to the different stakeholder theories and how these theories help on encouraging responsible business practices in an organization or company. Firstly as mentioned the different forms of stakeholder theories will be outlined to have a clear understanding of these different theories, this will also go in to explaining what is the role of managers and why managers should be ethical in an organization/ company. Corporate Social Responsibility will also be explained to link it to the essay question to evaluate the influence of stakeholders on encouraging responsible practices.
Firstly according to Crane & Matten 2010 “Business Ethics is the study of business situations, activities and decisions where issues of right and wrong are addressed”. Business Ethics changes throughout the years as what is know to be acceptable now might not be acceptable during the olden days, as society and culture changes throughout the years. Business ethics represents all the principles and standards that guide behavior in the world of business, therefore all this set of principles applies in any of the fields of business and people usually face ethical decisions in their every day working lives. Stakeholders also play a role in business ethics as they address morals and values in managing an organization and they have different theories, which help business work properly, and work ethically. Moral rights and wrongs of any decisions a business makes are what ethics usually refer to. Some businesses may have ethical policies already adopted into their business as they may feel that it is a good way to show that they are being ethical, as behaving ethically in a business is important for good business practice.
American auto maker Henry Ford quotes “A business that makes nothing but money is a poor kind of business” this is a good quote by Henry Ford as he mostly believed that for a company to survive they shouldn’t always rely on financial success, as some companies and business operate with only profit in mind. This type of business mind is not good because it would give out not so good response and consequences will arise for both staff and the business itself. The quote from Henry Ford suggest that businesses and companies should be encouraging responsible business practices rather then just thinking about the profit they are making, being profitable is not incompatible with being ethical, usually many companies and organizations seek profit within certain constraints such as: Fair dealing, good citizenship or integrity. There are also different approaches to manage business reputation, as business is business they should act consistently within the law as good ethics means good business, businesses should also think about conventional morality, According to Carroll & Buchholtz:
“The conventional approach to business ethics is essentially and approach whereby we compare a decision, practice, or policy with prevailing norms of acceptability. We call it the conventional approach because it is believed that this is the way conventional or general society thinks.”
(Carroll & Buchholtz 2008 p.243)
The conventional approach to business ethics has a clear distinction between a practice and decision that is made by someone and prevailing norms of acceptability. The questions that arise are which group's norms should be considered and which views are "prevailing." Norms usually come from a range of places and different individuals with different thoughts. These individual's conscience will guide decisions that are influenced by myriad sources such as the employer, laws, religious beliefs, even reality television shows. The conventional approach to ethics could make internal decisions based on...
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