Session 4

The Stakeholder Approach to Business Ethics

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Who Are Business Stakeholders?

Production and Managerial Views

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Who Are Business Stakeholders?

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Who Are Business Stakeholders?

Primary and Secondary Stakeholders
Primary stakeholders are those stakeholders that have a direct stake in the organization and its success Secondary stakeholders are those that have a public or special interest stake in the organization

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Who Are Business Stakeholders?

Core, Strategic, and Environmental Stakeholders
Core stakeholders are essential to the survival of

the firm Strategic stakeholders are vital to the organization and the threats and opportunities the organization faces Environmental stakeholders are all others in the organization's environment
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BUSINESS ETHICS & ECOLOGY

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ENVIRONMENTAL ISSUES
1. POLLUTION: air pollution, water pollution, land pollution 1. RESOURCES DEPLETION: depletion of species and habitats depletion of fossil fuels depletion of minerals

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THE ETHICS OF POLUTION CONTROL

ECOLOGICAL ETHICS APPROACH - Nonhuman have intrinsic value ENVIRONMENTAL RIGHTS APPROACH Human have right to a livable environment MARKET APPROACH Social cost = private cost + external cost External cost violate utility, rights, and justice
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THE ETHICS OF CONSUMER PRODUCTION AND MARKETING

THE CONTRACTUAL THEORY Duty to comply Duty of disclosure Duty not to misrepresent Duty not to coerce THE DUE CARE THEORY Caveat emptor Caveat vendor THE SOCIAL COST THEORY
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