Stakeholder Analysis Paper

profileghtyui52000
CorporationsSocietyStakeholders.ppt
Home>English homework help>Article writing homework help>Stakeholder Analysis Paper

"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. ... corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.“

-- U.S. President Abraham Lincoln, Nov. 21, 1864 (letter to Col. William F. Elkins)

*

Corporations, Society, & Stakeholders

I Societal Spheres of Influence

II Does business have a social responsibility?

stockholder model

social responsibility model

stakeholder model

Spheres of Influence
Well-Functioning Society

Economic

Political

Social

Ecological

Economic Political Civil Society

Make a Profit Serve the Public Build Strong Community

Nature (Ecology)

Subsist and Succeed

Bottom Lines in Spheres

Influence Among the Spheres

Business

Civil Society

Government

Lobbying

Regulations

&

Persuasion

Advertising

Public Relations

Political Process

Voting

Contributions

Consumption

Choices

Legal System

Public Service Provision

Economic Political Civil Society

Economizing Power Aggrandizing Relationship

Efficiency Collectivity Care

Self-reliance Equality Connectedness

Growth Power system Community

System integrity equilibrium Civility

Nature (Ecology)

Ecologizing

Linkage

Diversity

Homeostatic succession

Positive Values in Spheres

Economic Political Civil Society

Economizing Power Aggrandizing Relationship

Greed Hierarchy Power Struggles

Materialism Fascism Disorganization

Inequality Oligarchy Groupthink/Cultism

Exploitation Physical Force Isolation

Nature (Ecology)

Ecologizing

Eco-terrorism

Radical Ecology

Dark-Side Values in Spheres

Government Sphere

Common good

public interest--in the interest of society

Public Goods

shared, generally indivisible, external benefits accruing to all citizens from actions by others

Externalities

shared, indivisible, costs that accrue from deleterious actions of others

Civil Society Sphere: Bowling Alone?

Symptoms

  • fewer people vote or become actively involved in public life
  • fewer people take part in public meetings
  • less attendance at political events, less political participation
  • less religious affiliation, union membership, parent teacher association, volunteering

Factors of Influence

  • pressure of time and money
  • changing role of women
  • technology

Spheres of Influence
Current Society?

Public

Private

Economic

Political

Social

Ecological

According to the individuals interviewed in “The Corporation,” the problem is with corporations themselves, not necessarily with the people who run them. What evidence does the film use to make this point? Do you agree or disagree?

How is a corporation like or unlike a person? How does the status of the corporation as a legally recognized “person” correspond with other attempts to answer this question? How does the notion of “externalities” relate to the ethical status of the corporation as a “person”? If they are persons, could they be diagnosed as psychopaths?

Does business have a social responsibility?

Stockholder Model: NO

Corporate Social Responsibility Model: YES

Stakeholder Model: YES, but…

BUSINESS

Stockholder Model of Business
(Classical Economic Model)

Sole purpose of business

is to make a profit

Stockholder Model

  • the responsibility of business is to maximize the financial interests of its owners
  • a corporation is a piece of private property
  • based on the Classical Economic Model:
  • Adam Smith's invisible hand (the marketplace will take care of society)
  • perpetuated by Milton Friedman:

"management should make as much money

as possible while conforming to the basic

rules of society, both those embodied in law

and those embodied in ethical custom"

BUSINESS

Stockholder Model of Business
(Neoclassical Economic Model)

Business should make a profit while:

  • Honoring the moral minimum
  • Respecting individual rights and justice

r > g

leads to

wealth

concentration

“Business has become, in the last half century, the most powerful institution on the planet. The dominant institution in any society needs to take responsibility for the whole. . . . Every decision that is made, every action that is taken, must be viewed in light of that kind of responsibility.”

- Dr. Tom Donaldson

Corporate Social Responsibility Model of Business

Discretionary

Responsibility

Ethical Responsibility

Legal Responsibility

Economic Responsibility

CSR Perspective

  • A corporation should be held accountable for any of its actions that affect people, their communities, and their environment.
  • Harm to people and society should be acknowledged and corrected.
  • Means that a company may be required to forgo some profits if its social impacts seriously hurt some stakeholders or if its funds can be used to have a positive social impact.
  • History of the concept:

Philanthropy/Charity  Paternalism  Employee Welfare  Corporate Stewardship  Corporate Social Responsiveness  Corporate Social Performance Corporate Citizenship  Sustainability  Creating Shared Value

FOR CSR AGAINST CSR
Rise of the modern corporation has created many social problems. Therefore, corporations should assume responsibility for these problems. Taking on social issues is not economically feasible. Corporations should focus on earning profits for shareholders.
In the long run, it is in corporations' best interest to assume social responsibilities. It will reduce the chances of increased governmental regulation. Assuming social responsibilities places those corporations doing so at a competitive disadvantage relative to those who do not.
Large corporations have huge reserves of human and financial capital. They should devote at least some of their resources to addressing social issues. Those who are most capable should address social issues. Those in the corporate world are not equipped to deal with social problems.

Stakeholder Model of Business

BUSINESS

Stakeholder Model

  • the responsibility of business is to promote and protect the rights of its various internal and external stakeholders
  • stake - an interest, right, or ownership in an undertaking
  • primary stakeholders - those with a formal, official, or contractual relationship with the firm
  • secondary stakeholders - those without a formal relationship, but who interact with or influence the firm
  • challenge is to ensure that the firm's primary stakeholders achieve their objectives and that other stakeholders are satisfied and dealt with in an ethical manner

*

different stakeholders make different demands on business

employees want stable employment & fair pay

owners want satisfactory ROI and stock appreciation over time

customers want value & quality for dollar spent

suppliers want regular orders for goods & prompt pay

competitors want to gain market share and see industry grow

community wants to employ local residents, develop land, and protect environment

media wants to keep public informed about health & well-being

social activists want to monitor company actions and ensure that they comply with ethical and legal standards

government wants to raise revenue through taxes and promote economic development

general public wants to protect societal values and minimize risks, achieve prosperity

reciprocal duties exist among business's stakeholders (if business is to act responsibly, consumers have an obligation to make consumption choices based on social responsibility, and employees must make career choices in a responsible fashion) – arrows in BOTH directions

Reciprocal Stakeholder Model of Business

BUSINESS

*

*

different stakeholders make different demands on business

employees want stable employment & fair pay

owners want satisfactory ROI and stock appreciation over time

customers want value & quality for dollar spent

suppliers want regular orders for goods & prompt pay

competitors want to gain market share and see industry grow

community wants to employ local residents, develop land, and protect environment

media wants to keep public informed about health & well-being

social activists want to monitor company actions and ensure that they comply with ethical and legal standards

government wants to raise revenue through taxes and promote economic development

general public wants to protect societal values and minimize risks, achieve prosperity

reciprocal duties exist among business's stakeholders (if business is to act responsibly, consumers have an obligation to make consumption choices based on social responsibility, and employees must make career choices in a responsible fashion) – arrows in BOTH directions