Business Ethics: week 1 - intro and stakeholder theory

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  • Created by: jf00632
  • Created on: 16-03-19 20:17
What is ethics?
this is The study of business situations, activities and decisions where issues of right and wrong are addressed.”
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Who came up with this theory?
Crane & Matten,
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Can a corporation be morally responsible? who said they cant be?
Milton Friedman
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What was his reasons for this?
Only human beings have a moral responsibility for their actions • Social issues are the proper admin of the government rather than corporations • The first and foremost responsibility of business is to make profit
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What were the counter argumets for this?
A firm is a “legal person” • Organizational culture • A firm can make decisions independent of its members • Firms cause social problems (externality) • They are powerful and should use their power responsibly (power) • Firms rely on the contribution
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Why would business take social responsibility for their own interest? 1.
to avoid the Dodd-Frank Act which is a law that places law that places regulation of the financial industry in the hands of the government.
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Why would business take social responsibility for their own interest? 2. (2)
Extra and/or more satisfied customers and Employees may be more attracted/committed
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What is corporate responsibility? also look at triangle
this is when companies try to meet the economic, legal, ethical, and philanthropic demands of a given society at a particular time
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What is the stakeholder theory?
A stakeholder of an organization is: …any group or individual who can affect, or is affected by, the achievement of the organization’s objectives
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Who came up with this theory?
Freeman 1984:46
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Who came up with principles of corporate rights and effects?
Evan & Freeman (1993)
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What were the corporate rights by Evan and freeman?
Principle of corporate rights: the corporate has the obligation not to violate the rights of others
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What were the corporate effects by Evan and Freeman?
Principle of corporate effect: companies are responsible for the effects of their actions on others
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What is a stakeholder?
An individual or group that is harmed or benefits from the corporation
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Mitchel, Agle and Wood (1997) stated that stakeholders can be identified by their possession of 1 or all 3 of what attributes?
power, legitimacy and urgency
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How do stakeholders effect managers relations?
Stakeholder–manager relations are in constant flux
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How are stakeholder attributes constructed?
Socially
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Card 2

Front

Who came up with this theory?

Back

Crane & Matten,

Card 3

Front

Can a corporation be morally responsible? who said they cant be?

Back

Preview of the front of card 3

Card 4

Front

What was his reasons for this?

Back

Preview of the front of card 4

Card 5

Front

What were the counter argumets for this?

Back

Preview of the front of card 5
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