This paper will describe the key characteristics of a stakeholder and identifies all the stakeholders within the scenario for a pharmaceutical company PharmaCARE. In the PhamaCARE scenario the differences in the standard of living between developed and undeveloped nations presents human rights issues for PharmaCARE. The human rights issues will be analyzed and several recommendations to improve the company’s ethical standing going forward will be provided. Included in this paper is an assessment of PharmaCARE environmental initiative compared to the company’s negative anti-environment track record. At the conclusion of this paper is a comparison of PharmaCare’s actions with those of a real-world company, whose corporate activities led to ethical, environmental, or workplace safety issues and financial loss. Key characteristics of a stakeholder and all stakeholders within PharmaCARE
Stakeholders can be internal or external to the business and by definition a stakeholder is “a person, group or organization that has interest or concern in an organization and stakeholders can affect or be affected by the organizations’ actions, objectives and policies” in (BusinessDictionary, 2104). Stakeholders are usually contrasted against shareholders, which have ownership in the business. “The concept of a stakeholder does have moral and ethical implications for business governance. If a business only has a duty to its shareholders, then the business may have no moral obligations to any other person, organization or society. On the other hand, if a business has a duty to its stakeholders, then a business must take into account the interests of its stakeholders as well and not focus completely on maximizing the interests of its owners” (Education portal, 2014). Simply stated the key characteristic of a stakeholder includes any person, group or organization that has an interest in the activities and affairs of a company. The person, group or organization must be able to affect the business or be affected by the business and they can be both.
PharmaCARE internal stakeholders are easier to determine and consist of the executives, managers, employees and owners of the company. A much harder task is determining all of PharmaCAREs external stakeholders. The external stakeholders that have a direct impact on the companies operations include shareholders, suppliers and customers of PharmaCARE. Those external stakeholders that may or may not impact PharmaCARE operations include both the government and non-government organizations of the United States and Africa and the communities and society as a whole where PharmaCARE manufactures their pharmaceuticals as well as where they distribute their products. The creditors and finical sponsors that fund the healthcare educational programs and scholarships for PharmaCARE are also included as external stakeholders (Education portal, 2014). Human rights issues presented by PharmaCARE’s treatment of the Colberia’s indigenous population vs that of its executives.
Our developed country is filled with laws, statutes and rules designed to protect workers and mandate workplace safety (Halbert & Ingulli, 2012, p. 182). However, “Few employers in the United States have been held criminally responsible for even the most egregious workplace injuries and deaths” (p.183). Since the Occupational Safety Health Act (OSHA) was passed in 1970, OSHA has rarely invoked its legal authority to bring criminal actions against violators. “By comparison, there were more criminal enforcement cases brought by the EPA in 2009 (387), resulting in more jail time (76 years) and fines ($96 million) than during OSHA’s entire forty-year history” (Halbert & Ingulli, 2012, p. 183). From a corporate ethical responsibility perspective it appears we are sending mixed signals when we hold corporations more accountable for the way they treat the environment than the way they treat their employees. The human rights...
References: Education portal (2014). What is a stakeholder in business? Retrieved Nov 17, 2014 from http://education-portal.com/academy/lesson/what-is-a-stakeholder-in-business-definition-examples-quiz.html#lesson
Forbes, (2014). Building sustainable and ethical supply chains. Retrieved Nov 20, 2014 from http://www.forbes.com/sites/dougguthrie/2012/03/09/building-sustainable-and-ethical-supply-chains/
Halbert, T. and Ingulli, E. (2012). Workers’ rights as humans rightsuHu hH. In, Law and ethics in the business environment. Marion, Ohio: South-western.
Stakeholder. 2014 In BusinessDictionary.com. Retrieved Nov 17, 2014 from http://www.businessdictionary.com/definition/stakeholder.html
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