Managing Stakeholders' Expectations: A Utilitarian Approach

The report discusses the use of ethical theories by Stephen and Ralph, two individuals who need to manage their activities effectively. The Utilitarianism theory is highlighted as a normative approach that helps managers achieve goals and objectives while also providing a positive working environment. The report concludes that various ethical theories can be used to benefit different stakeholders. Additionally, it emphasizes the importance of considering stakeholder interests when making decisions.

Business Ethics A Global
Perspective

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Concept of Utilitarianism: ..........................................................................................................3
Application of theory on the Stephen case:.................................................................................4
Various ethical theories...............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business ethics is a form of applied ethics as well as professional ethics which assist in
examining the ethical principles and the moral or ethical problems which assist in arising in the
business environment (Crane and Matten, 2016). Business ethics also applies to all the aspects of
the business conduct as well as they are relevant to the conduct of the individuals and entire
business entity. In every company, it is essential as well as necessary as it helps in performing
their activities in the external environment. All the employees have to use the ethical practices so
that they can get all the information as well as knowledge about the right as well as wrong
conduct (Peng, 2016). The enterprise having so many responsibilities that they have to treat all
the employees equally. Along with this they have to save the environment of the business entity
from the harmful activities. In the below mentioned report, discussion based on several ethical
theories in the case of Stephen and Ralph. Along with this this report is focus on utilitarianism
which assist in increasing the efficiency of the person who are working in the company as it is
also based on the case study (Global Business Ethics and Social Responsibility, 2015).
TASK
Concept of Utilitarianism:
It is a theory which are included in the normative theories as well as ethics which assist in
defining the morality of the different actions. Along with this it is based on the different actions
that are used by the employees in the business entity to improve their business environment.
These actions helps in making the corrections if any consequences are occur in the company and
all the actions which are to be done in the firm to produce the pleasure to those individual person
who are associated with these actions (Rothaermel, 2015). This theory helps in providing the
happiness which is existing in the high or low pleasures. Utilitarianism is a idea which is having
a moral worth of an action which is solely determined by its contribution to the overall utility
which assist in maximising the happiness among all the people. It includes the total utility of all
the individual person which is important that they have to provide the greatest happiness for the

greatest number of the people (Sethi, 2016). The act of utilitarianism is a theory of ethics which
states that a person's having a morally right if they are producing the best goods and services
which provide the happiness to them by performing the work in a specified time. In the
utilitarianism there is a rule which they have to follow that is the rightness as well as wrongness
of the actual or particular function of the correctness of rule at the specified time (Dierksmeier
and et.al. 2016).
Application of theory on the Stephen case:
Stephens facing so many trouble that what he has to do and what type of business he has
to start so that he can earn maximum money. Stephens started or run the grazing operation on the
family farm from a day labourer and Ralph is also working with him on average three days a
week. They both have to fulfil their needs so for that they have to do multiple businesses so that
they can not face any problem (Schwarz, Hall and Shibli, 2015). As per the theory of
utilitarianism having a good along with the bad impact on the stakeholders which creates a
section on the basis of impact. Ralph is a person who remain always happy with their job and he
has to perform their work in a particular format so that both the person always remain happy. To
fulfil their needs, Ralph have to do multiple services on the different and alternate days.
Stephen is having a target or goal that they have to buy a new farm so that Stephen can
provide the work to Ralph and he having a good intention with providing the good work to them
(Schaper, 2016). According to the theory Stephen have to focus on their utilisation of their
resources along with the employees which are available with him and on the basis of that they
can generate more revenues as well as profits by which they can do the different business
activities in a good manner. Along with this it helps in providing the better opportunities to their
stakeholders (Ethics and Communication, 2017).
Various ethical theories
There are different theories which can be used by the person for doing the proper
practices as well as business activities which provide the happiness to them. Different theories
are:
Egoism: It is a ethical theory that treats the self interest as the foundation of the morality.
It is related to the different practices by the business entity so that they can give proper
performance for their self interest which assist in increasing the profits in the marketplace. In this
theory, both are not take care of the happiness and pleasure (Barry, 2016). Many organisation

having their interest that they have to do proper business activities so that they can not face any
problem. Along with this they are not having focus on the happiness of the others so that they
can attain their business goals and objectives. According to the case of Ralph and Stephan, as
Stephan's father does not having the interest in expanding their business in the different markets.
They both are having the centralized intentions and they have to focus on the needs and demand
so that they can do proper care of the other person.
Ethics of duty: This is a business ethics which helps in supporting to the different person
and that is based on their employers. They have to emphasize the employers along with the
owners so that they can make their proper business activities with the loyalty as well as they
have to provide the better treatments to the stakeholders (Park and Ghauri, 2015). By using the
theory, Stephens having a duty as well as responsibilities that they have to provide best and
particular job to Ralph so that they can provide the proper remuneration so that they can fulfil the
needs of life. This theory is also helps in providing the proper benefits to their stakeholders.
Along with this it helps in supporting to get the more remuneration as well as advantage by the
employers so that they can attain the success in the competitive market. Both the person have to
do proper and appropriate business activities by using the ethics in a proper manner (Lodhia,
2015).
Ethics of right: In each and every company they are having a legal rights which is
provided by the legislation so that it is necessary as well as essential for the employers and they
are providing the jobs to the employees to those person who are having a need to do job. By
using this theory, people which having a power to make the control by using the benefits of the
different subordinates so that they can attain the appropriate solutions for the different
stakeholders (Gümüsay, 2015). According to this theory, the person who are doing the work in
the control of the other person so that they can attain the success by using the proper rights so
that they can attain the benefits which are accepted as well as provided by the regulatory bodies
(Soundararajan and Brown, 2016).
CONCLUSION
From the above report it has been analysed that there are two person that is Stephen and
Ralph have to use the different ethical theories which helps in managing all the activities so that
they can not face any issues. Utilitarianism is also a approach or a normative theory which helps
the manager as well as employer to accomplish the goals and objectives. Moreover, it succour

the employers to manage a positive working environment in the company. This report is based
on the case study and in this Stephen is a person who using utilitarianism theory to provide the
happiness to Ralph. As these theory assist in attaining the advantage to the stakeholders. Along
with this there are different ethical theories which can be used by them.

REFERENCES
Books and journals
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sustainability in the age of globalization. Oxford University Press.
Dierksmeier, C and et.al. 2016. Humanistic ethics in the age of globality. Springer.
Gümüsay, A.A., 2015. Entrepreneurship from an Islamic perspective. Journal of Business Ethics,
130(1), pp.199-208.
Lodhia, S., 2015. Exploring the transition to integrated reporting through a practice lens: an
Australian customer owned bank perspective. Journal of Business Ethics.129(3).
pp.585-598.
Park, B.I and Ghauri, P.N., 2015. Determinants influencing CSR practices in small and medium
sized MNE subsidiaries: A stakeholder perspective. Journal of World Business. 50(1).
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Peng, M.W., 2016. Global business. Cengage learning.
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Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
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Sethi, S., 2016. Globalization and self-regulation: The crucial role that corporate codes of
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Soundararajan, V and Brown, J.A., 2016. Voluntary governance mechanisms in global supply
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Online
Ethics and Communication. 2017. [Online]. Available
through:<https://www.rowmaninternational.com/book/ethics_and_communication/3-
156-f02c5db4-fd1d-46d1-b0ca-bc27b17277e7>. [Accessed on 24th April 2017].
Global Business Ethics and Social Responsibility. 2015. [Online]. Available
through:<http://kwhs.wharton.upenn.edu/lesson_plans/global-business-ethics-and-
social-responsibility/>. [Accessed on 24th April 2017].