Chapter Topics
1. Why use a stakeholder management approach for business ethics? 2. Stakeholder management approach defined 3. How to execute a stakeholder analysis 4. Stakeholder approach and ethical reasoning 5. Moral responsibilities of functional area professionals 6. Three issues management approaches 7. Two crisis management approaches
Copyright 2003 by South-Western, a division of Thomson Learning 2
affect or is affected by the actions, decisions, policies, practices, or goals of the organization. Primary stakeholders of a firm: owners, customers, employees, and suppliers. Secondary stakeholders: all other interested groups such as the media, consumers, lobbyists, courts, governments, competitors, the public, and society. Stakes: any interest, share, or claim that a group or individual has in the outcome of a corporations policies, procedures, or action toward others.
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The stakeholder analysis is an analytical method where no prescribed ethical principles or responsibility rules are built-in. Ethical reasoning in the stakeholder analysis means asking:
What is equitable, just, fair, and good for those who affect and are affected by business decisions? Who are the weaker stakeholders in terms of power and influence? Who can, who will, and who should help weaker stakeholders make their voices heard and encourage their participation in the decision process and outcomes?
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Acute
Damage has been done
Chronic
Clean-up phase
Resolved
The crisis management goal
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Reaction
A crisis has occurred The company is overwhelmed by public attention
Defense Insight
Accommodation Agency