LDR-800 Module 6 DQ 1

Module 6 DQ 1: Stakeholders and Ethics

I believe that there are stakeholders truly interested in the ethical management of their company for a number of reasons: (1) ethical management offers a fair amount of stability and perhaps even sustainability within an organization—which most stakeholders would find desirable, attractive, and profitable; and (2) ethical management yields evidence of corporate social responsibility and most often leads to an organization’s ethical identity, which is a favorable and positive concept in society. Verbos, et al (2007) writes, “The concept of organizational identify is rooted in organizational behavior;” adding, “creation of a corporate identity is a deliberate act often undertaken from a marketing perspective for the benefit of the organizations internal and external stakeholders to establish a corporate vision, brand, image, or reputation (cf. Balmer, 2001; Balmer and Gray, 2000; Balmer and Greyser, 2002, 2003; Olins, 1989) [cited by Verbos, et al, 2007, p. 22]. Stakeholders may deem ethical management and corporate ethical identity offer benefits for both personal value and profitable gains. 

Although there has been significant focus on profitable, financial gains for stakeholders, this paradigm is shifting. Laczniak & Murphy (2012) discuss how the focus on maximum profit growth and the “social ethos of expectations for business performance may be shifting,” (p. 290). “As business influence becomes increasingly global and economically powerful, society will demand greater responsibility and accountability…” (Laczniak, et al, 2012, p. 290). According to Laczniak, et al (2012) consumer wellbeing, social fairness, and corporate ethical behaviors become primary concerns for stakeholders as opposed to profit gains. Laczniak, et al (2012) conclude “…serving stakeholders sometimes requires sacrificing maximum profits to mitigate outcomes that would inflict major damage on other stakeholders, especially society,” (p. 284).

References:

Verbos, A., Geranld, J., Forshey, P., Harding, C., & Miller, J. (2007). The positive ethical organization: Enacting a living code of ethics and ethical organizational identity. Journal of Business Ethics, 76(1), 17-13.

Laczniak, G. R., & Murphy, P. E. (2012). Stakeholder theory and marketing: Moving from a firm-centric to a societal perspective. Journal of Public Policy & Marketing, 31(2). 284-292.