Business Ethics Term Paper
Samantha Lawson
Business Ethics Terms Summary Paper
27 February 2012
1.) Stakeholders are defined as customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have stake or claim in some aspect of a company’s products, markets, operations, industry, and outcomes. They are influenced by business, yet they also influence businesses. The relationship between stakeholders and businesses is very similar to the relationship a husband and wife would share, in the aspect that it is a two way street.
The influence that a stakeholder or a special interest group has over businesses can be seen all the time. In certain cases, stakeholders take part in activities that highlight negative things about a company and the products they are producing. This negative press can spark a change in the company’s practices. An example which is given in the required text, speaks of consumer groups (also known as stakeholders) who have been lobbying and fighting to improve the nutritional value of foods that are created and marketed towards children. As a result of this, cereal manufacturers such as General Mills and Post Foods responded by reducing the sugar levels to 9 grams or less per serving, in certain cereals that are targeted at children ( Lucky Charms, Cocoa Pebbles, Fruity Pebbles, etc..).
A company would not be a company if it did not have its stakeholders. It would be difficult for a company to grow and prosper without the engagement of employees, agencies, special interest groups, etc. According to the Stanford Research Institute regarding stakeholders, "those groups without whose support the organizations would cease to exist.” 2.) According to the text Business Ethics: Ethical Decision Making and Cases, one difference between a regular decision and an ethical decision whether it be applied to business or everyday life, lies in “the point where the accepted rules no longer serve, and the decision maker is
Business Ethics Terms Summary Paper
27 February 2012
1.) Stakeholders are defined as customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have stake or claim in some aspect of a company’s products, markets, operations, industry, and outcomes. They are influenced by business, yet they also influence businesses. The relationship between stakeholders and businesses is very similar to the relationship a husband and wife would share, in the aspect that it is a two way street.
The influence that a stakeholder or a special interest group has over businesses can be seen all the time. In certain cases, stakeholders take part in activities that highlight negative things about a company and the products they are producing. This negative press can spark a change in the company’s practices. An example which is given in the required text, speaks of consumer groups (also known as stakeholders) who have been lobbying and fighting to improve the nutritional value of foods that are created and marketed towards children. As a result of this, cereal manufacturers such as General Mills and Post Foods responded by reducing the sugar levels to 9 grams or less per serving, in certain cereals that are targeted at children ( Lucky Charms, Cocoa Pebbles, Fruity Pebbles, etc..).
A company would not be a company if it did not have its stakeholders. It would be difficult for a company to grow and prosper without the engagement of employees, agencies, special interest groups, etc. According to the Stanford Research Institute regarding stakeholders, "those groups without whose support the organizations would cease to exist.” 2.) According to the text Business Ethics: Ethical Decision Making and Cases, one difference between a regular decision and an ethical decision whether it be applied to business or everyday life, lies in “the point where the accepted rules no longer serve, and the decision maker is
References: Ferrell, O. C., & Fraedrich, J. (2012). Business ethics: ethical decision making and cases (9., rev. ed.). Boston: Houghton Mifflin Co.