Management In Action Unit

Anita Nandini

Contents-Ethical Issues in Management

Relationship among Various Stakeholders Reasons for Conflict of Interests Among Stakeholders Corporate Governance and Ethics Why Unethical Decisions Leading to Conflicts are Taken, Power and Politics Initiatives on Corporate Governance by the Governments.

What is Ethics ?
Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior. - that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.

What is Business Ethics

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Who are stake holders

Stakeholders
Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society

Origins of the Stakeholder Concept

What is a stake?

An interest or a share in an undertaking and can be categorized as:

Interest Right Legal Ownership

Moral

Origins of the Stakeholder Concept

What is a stakeholder?
An individual who possesses a stake

Who Are Business Stakeholders?

Government Employees

Business

Community

Owners

Consumers

Who Are Business Stakeholders?

Evolution and Development of the Stakeholder Concept Views of the Firm

Production

Managerial

Stakeholder

Who Are Business Stakeholders?

Production and Managerial Views

Who Are Business Stakeholders?

Stakeholders
task
Identify as many stakeholders as you can for one of the following businesses
Adidas Shell McDonalds Titan Industries Indian Railways Everest Masala

List them under the following headings:

Internal External

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Stakeholder objectives
examples

Customers: value for money, good service, quality Owners/shareholders: satisficing/maximising return on investment Managers: status, performance bonuses Employees: high wages, conditions of work Suppliers: to sell a lot at a high price, repeat orders, customer loyalty Pressure groups: to force a reduction of environmental impact

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Stakeholder conflict- Examples

Owner v customer: Profit v service e.g. conflict over opening hours Gov. Vs. Management : Laws Vs. Profitability E.g.: Mandatory leave/working hours etc Shareholder v worker: Profits v high wages Owner v management: Divorce between ownership (profits) and control i.e. The owners have little power over managers Employer v employee Employees see their hard work reflected in higher profits for the employer Employers look for greater efficiency more output for lower costs

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