Ethical Problems of Ethical Problems of OrganizationsOrganizations

Chapter 8Chapter 8

StakeholdersStakeholders

Stake: Stake: An interest or a share in some effort or An interest or a share in some effort or

undertaking.undertaking. A claim or a right to something.A claim or a right to something. A demand for something due or something A demand for something due or something

perceived to be due.perceived to be due. Stakeholder:Stakeholder:

Any individual or group that has one or more Any individual or group that has one or more stakes in an organization.stakes in an organization.

StakeholdersStakeholders

Primary stakeholders:Primary stakeholders: Those groups or individuals with whom the Those groups or individuals with whom the

organization has a formal, contractual organization has a formal, contractual relationship.relationship.

Secondary stakeholders:Secondary stakeholders: Other groups or individuals to whom the Other groups or individuals to whom the

organization has obligations, but who are not organization has obligations, but who are not formal, contractual partners.formal, contractual partners.

Abraham’s Stakeholder Model Abraham’s Stakeholder Model

Primary stakeholders:Primary stakeholders: Business partnersBusiness partners CustomersCustomers EmployeesEmployees

Secondary stakeholdersSecondary stakeholders Opinion formersOpinion formers CommunityCommunity AuthoritiesAuthorities

Ethical IssuesEthical Issues

Ethics and ConsumersEthics and Consumers Conflicts of interestConflicts of interest Product safetyProduct safety AdvertisingAdvertising

Ethics and EmployeesEthics and Employees Employee safetyEmployee safety Employee downsizingEmployee downsizing

Ethical IssuesEthical Issues

Ethics and shareholdersEthics and shareholders Ethics and the communityEthics and the community

Linda K. Trevino and Katherine A. Nelson, Linda K. Trevino and Katherine A. Nelson, Managing Business EthicsManaging Business Ethics, (Wiley, New , (Wiley, New Jersey) pp. 214-249.Jersey) pp. 214-249.