philosophy final project

Yujia Liu PHIL 119

2017/3/19 Final Paper Prospectus

Ethical Relationship between Stakeholders and Shareholders

1. Introduction

For all leaders in companies or organizations, one question is always mentioned – should companies seek only to maximize shareholders value or strive to serve the often-conflicting interests of all stakeholders. Undoubtedly, the answer is no. However, it is also difficult for leaders to find the most suitable way to keep the balance between the two important groups during their administration. This paper will discuss the ethical behaviors of stakeholders and shareholders and then find the ways to maximum the common interests.

Key Points

1. The accurate definition of stakeholders and shareholders and the accurate duties for each group.

2. Ethical behavior built by each side during the business relationships

3. Discussion and analysis about several business scandals under the ethical stage.

1. Body of paper

1. The accurate definition of stakeholders and shareholders and the accurate duties for each group.

Stakeholders - A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, owners (shareholders), suppliers.

Shareholders - An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued.
http://www.businessdictionary.com/definition/shareholder.html

http://www.businessdictionary.com/definition/stakeholder.html

1. Ethical behavior built by each side during the business relationships

1. Business ethics and customer stakeholders

1. https://danielsethics.mgt.unm.edu/pdf/Customer%20Stakeholders.pdf

2. http://businesscasestudies.co.uk/primark/engaging-with-stakeholders/customers-and-shareholders.html

1. The ethical responsibilities in the Employer-Employee relationship

1. http://josephsononbusinessethics.com/2010/12/responsibilities-employer-employee-relationship/

2. https://www.allbusiness.com/ethics-and-people-management-2975409-1.html

3. http://catalogue.pearsoned.ca/assets/hip/ca/hip_ca_pearsonhighered/samplechapter/0131245228.pdf

1. Balance between managers and shareholders.

1. http://smallbusiness.chron.com/managers-goals-vs-shareholders-goals-38807.html

2. http://smallbusiness.chron.com/conflicts-between-corporate-management-shareholders-75063.html

3. https://insight.kellogg.northwestern.edu/article/shareholders_vs_management_split_decision

4. https://plato.stanford.edu/entries/ethics-business/

1. Ethical issues with suppliers

1. https://www.cips.org/Documents/About%20CIPS/Ethical_Bus_Prac%20printed.pdf

2. http://www.mypurchasingcenter.com/purchasing/industry-articles/ethics-issues-prevail-supply-chain-management/

3. http://www.supplychainbrain.com/content/research-analysis/chainlink-research/single-article-page/article/ethics-issues-are-at-the-heart-of-supply-chain-management-1/

4. http://ism.files.cms-plus.com/About/principlesandstandardsguidelines.pdf

1. Discussion and analysis about several business scandals under the ethical stage

1. Toshiba’s accounting scandal

http://www.investopedia.com/articles/investing/081315/toshibas-accounting-scandal-how-it-happened.asp

1. FIFA’s RICO problem

https://www.asil.org/insights/volume/19/issue/23/fifa-corruption-scandal-perspective-public-international-law

1. Goldman Sachs employee uses stolen confidential materials

http://www.bizjournals.com/newyork/news/2015/10/28/a-scheming-employee-just-cost-goldman-sachs-50.html

1. The dirty business of oil and gas

http://www.foe.org/system/storage/877/c2/f/561/Dirty_Business_TransCanada_Web.pdf

1. Millions of kids’ personal data hacked

http://fortune.com/2015/11/30/vtech-hacking-children-data/

1. Exxon Mobil deliberately misleads the public about climate change

https://www.nytimes.com/2015/11/06/science/exxon-mobil-under-investigation-in-new-york-over-climate-statements.html?_r=0

1. Volkswagen cheats emission tests

http://www.bbc.com/news/business-34324772

1. Turing Pharmaceuticals jacks up prices.

https://qz.com/611347/martin-shkreli-has-fallen-from-grace-but-his-former-firm-is-still-charging-sky-high-prices/

1. Conclusion – It is important to realize that the balance between shareholder and stakeholder still cannot be completely controlled under any business circumstances, because there are too many components in the general environment that varies suddenly in most time. Neither shareholder primacy nor stakeholder theory is plausibly interpreted as the view that corporate managers should do whatever is possible to maximize shareholder wealth and balance all stakeholders’ interests, respectively. Rather, these views should be interpreted as views that managers should do whatever is morally permissible to achieve these ends. A large part of business ethics is trying to determine what morality permits in this domain.

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