Business And Professional Ethics

Running head: BUSINESS AND PROFESSIONAL ETHICS
BUSINESS AND PROFESSIONAL ETHICS
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1BUSINESS AND PROFESSIONAL ETHICS
Question 1
a) What does Goodpaster mean by ‘strategic stakeholder synthesis’? Why does
he think that businesses that operate according to the principles of strategic
stakeholder synthesis do not really introduce ethical values into business
decision making?
Strategic stakeholder synthesis according to Goodpaster is said to be when organisations
assess who are the stakeholders who have the highest influence on the operations and the
business of the company and organisation and include them in the decision making of the
organisation based on that fact (Goodpaster 1991).
Goodpaster states that introduction of values and ethics is not mandatory and can skip
doing this as the company will only prioritize stakeholders and shareholders having huge effect
on the business and thus it is important just to function properly to keep the stakeholders satisfied
who do not have much influence on the organisation (Goodpaster 1991).
b) Goodpaster argues that we need an approach to business ethics that avoids
business without ethics (strategic stakeholder synthesis) and ethics without
business (a multi-fiduciary stakeholder approach). Explain Goodpaster’s
nonfiduciary approach to business obligations, making sure you distinguish it
from both the multifiduciary stakeholder approach and the strategic
stakeholder approach.
According to Goodpaster, Nemo Dat Principle is an effective nonfiduciary approach
which states that it is important for the businesses to generally satisfy and meet the demands of

2BUSINESS AND PROFESSIONAL ETHICS
the consumers by providing quality services and products and thus do not need to act ethically
additionally (Goodpaster 1991).
The approach is considered to be beneficial and more effective than the multi-fiduciary
stakeholder approach and strategic stakeholder analysis. The multi-fiduciary stakeholder
approach tells that companies and organisation do not have non-fiduciary obligations to any third
parties that mainly revolve around relationships that are fiduciary. The strategic stakeholder
approach on the other hand which states that organisations emphasize on stakeholders having
high influence and include them in the decision making process of an organisation however not
the stakeholders who have very little effect on the organisation. Thus, making the approach
suggested by Goodpaster feasible.
c) Does Goodpaster’s nonfiduciary account of business obligations provide
sufficient protection for the interests of stakeholders other than
shareholders? Does it avoid the problem of treating stakeholders as mere
means to corporate ends? Give reasons for your answer.
The non-fiduciary approach suggested by Goodpaster will help in safeguarding the stakeholder’s
interest as it focuses on providing the customers on consumers with the products and services of
high quality and helps in meeting the demands of the stakeholders automatically making it
ethical without following any ethical rules.
This approach is seen to be favouring the stakeholders and treating them more than means to
their corporate goals. This approach considers moral values and also helps in making positive
relationship with the customers and also boosts their reputation in the market. This later helps in
building a positive relationship between both the stakeholders and the organisations.