Ethical Theories & Stakeholders Essay Example | Topics and Well Written Essays - 1750 words

Ethical Theories & Stakeholders - Essay Example An organization exists in the society, for the society and cannot have an existence independent of the society. Moreover, the organization has responsibility towards all the stakeholders that are directly or indirectly affected by the conduct of the organization or the employees (Joyce, 2005). Problem statement Top management involvement is essential to build a strong ethical culture within an organization (Clement, 2006). The issues before Veronica are to ascertain if the company policy permits action against such issues. Besides, as a director, she has responsibility towards the stakeholders. She is also morally bound by duty to act in the interest of the maximum number of people. If the demands of the shareholders, stakeholders, consumers and the investors are not met, it can adversely affect the brand image, customer retention, and overall business (Robinson, 2002). Ethical theories & Stakeholders The stakeholders The stakeholder theory holds that managers are obliged to serve al l those who have a â€Å"stake† in the firm (Marcoux, 2000). Initially the stakeholders included the Big Five – the employees, the owner or the shareholders, the customers, suppliers and the community in which the firm operated. The other twin stakeholders include the government (who has the responsibility to ensure that the firm complies with all regulations) and the competitors (who keep the company conscious of the developments and help avoid unethical business practices. The purpose of the firm itself is to serve and coordinate the interests of all the stakeholders (Joyce, 2005). Great Builds is a multinational engineering company and has to ensure that the interest of all the stakeholders is taken care of. Employees are the greatest stakeholders as they constitute the firm and contribute to the firm. Employees have the fundamental right to liberty and safety within the workplace (Greenwood & Cleri, 2005). Customers are only interested in reliable supply of goods a nd services but more recently they have become conscious of dealing with ethical firms. The suppliers demand timely payments and long-term relationships and the community expects safety and security. In the case of Great Builds the most affected by unethical practices would be the employees, the customers and the shareholders. The competitors could be positively affected if the performance of Great Builds suffers as a result of the CEO’s behaviour. Categorical Imperative According to Immanuel Kant duties cannot be associated with self-interest or rewards and payoffs (Carrigan, Maronova & Szmigin, 2006). Moral requirements are based on a standard of rationality known as â€Å"Categorical Imperative†. However, chances are these standards are desire-based on instrumental principles of rationality (Stanford, 2004). The moral philosophy goes beyond that of a human slave to passions. Kant emphasizes that there is a self-governing reason in each individual which guides the pe rson in a rationale decision-making process. There has to be motivation by duty or motivation by respect for law that governs actions. Thus, Kant states that the fundamental principle of our moral duties is a categorical imperative. The word imperative urges us to act in a particular way. The Categorical Imperative is derived from two maxims – objectivity and respect for all persons (Kitcher, 2004). The maxim of objectivity states that the act is right if

2 case OD Assignment Example | Topics and Well Written Essays - 1000 words

2 case OD - Assignment Example 62). This advocates something that is more than reactive to the changes. A fully developed culture that is distinctive to the corporation necessitates from the need for change for the vigorous development of the corporation. This embraces the potentials and participation of every member of the company as going beyond passive. It would be unacceptable to assume that other companies would never be able o adapt the same system. The success of Setpoint lies on the role that the management places on their employees. It’s no less than adapting the saying that there are no small roles, only small actors. Because indeed, the company has shown that the concept of team is well integrated into their dynamics. Everyone was well-informed of their roles toward the achievement of a common goal as epitomized in their board. I believe that culture per se cannot be bought but it can be developed and the availability of money at a company’s disposal to achieve the development of culture is very helpful. The achievement of an evolved culture can be realized through the persistent efforts of the vital members of the company and including the involvement of all the employees. Everyone must be open for change and accept this change as a positive impact for the company. As consistently established, Organizational Development is a long-term commitment that needs time. It is not something that happens overnight. Culture is a combination not only of the management but also the organization (Brown and Harvey, p. 63). There are companies who are willing to shell out millions of dollars to be able to buy culture. This is only a manifestation of the necessity of culture. There are those who may have spent for brand imaging and public relations among others. But it is still the perception of those who are withi n the company and that which resonates to the public which