Bussiness Ethics-Stakeholder Theory

Stakeholder theory—business & ethics

1. Difference between shareholders and stakeholders.
Shareholders are stakeholders in a corporation, but stakeholders are not always shareholders. A shareholder owns part of a company through stock ownership, while a stakeholder is interested in the performance of a company for reasons other than just stock appreciation.

Stakeholders could be:

  • employees who, without the company, would not have jobs
  • bondholders who would like a solid performance from the company and, therefore, a reduced risk of default
  • customers who may rely on the company to provide a particular good or service
  • suppliers who may rely on the company to provide a consistent revenue stream
Although shareholders may be the largest stakeholders because shareholders are affected directly by a company’s performance, it has become more commonplace for additional groups to be considered stakeholders, too.
2. Awesome Information from the Video.

a. Stakeholder theory puts business and ethic together!

b. Stakeholder theory focuses on how to make the interests of customers, suppliers, employees, shareholders and financiers go into the same direction.

c. It is the arts of NOT making those tradeoffs, trying to make interests go in the same direction. If you look for tradeoffs, you certainly will find some of them. If you look for how those interests go into the same direction, you MAY NOT find it. BUT, I am pretty sure, you won’t find it, of you don’t look!!!

d. Stake holders turn out to be not just products, not accounts, not assets, not liabilities. They turn out to be living and breathing human beings. They are not just some roles; they are actual people!

e. You don’t just provide products and services, because your things come with your promises.

Stakeholder theory puts business and ethic together!

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