Stakeholder: Business Ethics

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

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