Stakeholder theory
DEFINITIONSETHICS a sub-discipline of philosophy concerned with
issues of right and wrong in human conduct. It is concerned with
good and bad; what is authentic and not authentic; and with the
notions of duty, obligation, and moral responsibility.VALUES
Individual beliefs which motivate and guide behavior.NORMS Group or
societal standards or generally held criteria for acceptable
conduct.ETHICS Objective basis upon which judgments are rendered
regarding right or wrong behavior.MORALS Actions, behavior, and the
principles that guide them.
OFTEN USED AS SYNONYM FOR ETHICS.ETHICAL
BASES/THEORIESDEONTOLOGYTELEOLOGYEXISTENSIALISMDEONTOLOGICALRule-based
approach, focusing on obligation and duty, similar to the
orientation found in the Bible. Since attention is directed to the
act itself, this approach is non-consequentialist.
FOCUS: WHAT IS RIGHTDEONTOLOGICALRULE-BASEDOBLIGATION OR
DUTYATTENTION DIRECTED TO ACT ITSELFFOCUS: WHAT IS
RIGHT.TELEOLOGICALCONSEQUENCESMEASURES AMOUNT OF GOOD OR BAD
ARRISING FROM BEHAVIORFOCUS: WHAT IS GOODDISCUSSIONTHE DIFFERENCE
BETWEEN DEONTOLOGICAL AND TELEOLOGICAL
DISCUSS EMBRYONIC STEM CELL RESEARCH.
We cannot allow the theology of a few to prevent the progress of
the manyEXISTENTIALAttention is directed squarely on the
individual. Concepts such as authenticity, which refers to how true
the person is to himself or herself, integrity, and genuine-ness
are factors that must be considered in judging each individual act
at that particular time within the context of the unique
circumstances prevailing.FOCUS: WHAT IS
AUTHENTICEXISTENTIALISMATTENTION ON INDIVIDUALINTEGRITYTRUE TO
SELFCONSISTENTAUTHENTICFOCUS: WHAT IS AUTHENTICNormative
TheoriesStock holder TheoryThe Friedman Doctrine, also known as
thestockholder theory, is an idea proposed by economic
theoristMilton Friedman, which states that a company's only
responsibility is to increase its profits.One of the oldest It has
fallen into disrepute todayIt is an un warranted hangover from bad
old days of capitalismStock holder TheoryThe stockholder theory
states that there is only one social responsibility of business: to
use its resources to engage in activities designed to increase its
prot so long as it operates without deception or fraud.
Stock holder TheoryThis theory was introduced by Milton
Friedman, a prominent economist and Nobel Prize winner, who
believed that the corporations only responsibility was to its
stockholders and that the latter are interested in prot
maximization. Therefore, leaders should act as agents for
stockholders and focus on their interests.Friedman argued that a
company should have no "social responsibility" to the public or
society because its only concern is to increase profits for itself
and for its shareholders
Stakeholder theoryStakeholder theoryis a theory of
organizational management andbusiness ethicsthat addresses morals
and values in managing an organization. It was originally detailed
byR. Edward Freemanin the bookStrategic Management: A Stakeholder
ApproachIdentifies and models the groups which are stakeholders of
acorporation, and both describes and recommends methods by which
management can give due regard to the interests of those groups. In
short, it attempts to address the Principle of Who or What Really
Counts.Stakeholder theoryAccording to Stakeholder Theory, the very
purpose of the firm is to serve and coordinate the interests of its
various stakeholders. These stakeholders can include employees,
suppliers, customers and the communities in which the firm
operates. It is the moral obligation of the firm's managers to
maintain a balance among these interests when directing the
activities of the firm.Immanuel Kant analyzed Friedmans stockholder
theory and Freemans stakeholder theory, also known as Kantian
capitalism and added that when corporations follow the stockholder
theory, they fail to recognize and respect the needs of those who
contribute to their existence and place themselves in a position to
self-destruct through negligenceTherefore, the stakeholder theory
is superior to the stockholder theory.Social Contract
TheoryInpolitical philosophythesocial contractorpolitical
contractis a theory or model, that typically addresses the
questions of the origin of society and the legitimacy of the
authority of thestateover theindividual.
Social contract arguments typically say that, individuals have
consented, either explicitly or tacitly, to surrender some of their
freedoms and submit to the authority of the ruler or magistrate (or
to the decision of a majority), in exchange for protection of their
remainingrights. Social Contract TheoryThe question of the relation
between natural and legal rights, therefore, is often an aspect of
social contract theory.The Social Contract(Du contrat social ou
Principes du droit politique), written byJean-Jacques Rousseau, is
a 1762 book about government reforms and how it should change to
benefit citizens instead of the government.Social Contract
TheoryHugo Grotius(1625),Thomas Hobbes(1651),Samuel
Pufendorf(1673),John Locke(1689),Jean-Jacques Rousseau(1762),
andImmanuel Kant(1797) are among the most prominent of 17th- and
18th-century theorists of social contract and natural rights. Each
solved the problem of political authority in a different way.
Grotius posited that individual human beings hadnatural rights;
Hobbes asserted that humans consent to abdicate their rights in
favor of the absolute authority of government (whether monarchial
or parliamentary); Pufendorf disputed Hobbes's equation of a state
of nature with war.
Social Contract TheoryLocke believed thatnatural rightswere
inalienable, and that the rule of God therefore superseded
government authority; and Rousseau believed that democracy
(self-rule) was the best way of ensuring the general welfare while
maintaining individual freedom under the rule of law.
The Lockean concept of the social contract was invoked in
theUnited States Declaration of Independence.
Social contract theories were eclipsed in the 19th century in
favor ofutilitarianism,Hegelianism, andMarxism, and were revived in
the 20th, notably in the form of athought experimentby John
Rawls.
Social Contract TheoryBuilding on the work of Immanuel Kant with
its presumption of limits on the state,John Rawls(19212002)
proposed a contract approach, inA Theory of Justice(1971), whereby
rational people in a hypothetical "original position", setting
aside their individual preferences and capacities under a "veil of
ignorance", would agree to certain general principles of justice
and legal organization. Rerum Novarum Pope LeoXIIINishkama Karma
Bhagawad GitaSharia & Halal Islamic