Introduction to Strategic Stakeholder Synthesis

Added on - 28 May 2020

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Running Head: PHIL 2011PHIL 201Name:Institution:
PHIL 2012Section Onea) Strategic Stakeholder SynthesisAccording to Goodpaster (1991) strategic stakeholder synthesis involves going a stepfurther in decision making. These measures include the actual decision making and itsimplementation. The synthesis provides a cycle on how to move from the process of stakeholderunderstanding to coming up with a resolution.Further, Goodpaster supposes that businesses that operate by making use of strategicstakeholder synthesis do not qualify in introducing ethical issues during decision making. This isbecause the strategic stakeholder is not eligible because it is non-moral (Goodpaster,1991). Thisis because consequences that result from one’s actions to others are confused with what peopleregard as moral. Being moral constitutes avoiding unfairness to the affected since it is wrongdespite the retaliatory potential of the affected.b) Goodpaster’s Nonfiduciary ApproachGoodpaster suggests adopting a new stakeholder synthesis by considering the morallynonfiduciary obligations entitled to the third parties. The obligations involve duties such as notcoercing, not lying, cheating, or even stealing. These obligations are contained in the legislative,regulatory, and judicial arguments which constrain business activities that are profit-driven.The nonfiduciary approach is different from both multi-fiduciary and strategicstakeholder approach. Stakeholder’s approach gives more concern to the stakeholders as factorswhich may have an influence either positively or negatively to the economic interests. Multi-fiduciary approach views the stakeholders as separate from their economic, contributory, or theirlegal influence. However, non-fiduciary approach entails obligations surrounding the thirdparties, and which are morally significant.
PHIL 2013c) Nonfiduciary Account of Business ObligationsAccording to Goodpaster's nonfiduciary approach, it offers enough protection for thestakeholders’ interests rather than those of the shareholders. This is because it offers anunderstanding of the corporation’s conscience as being logical and a moral extension of theprincipals. The approach has further offered a moral posture that respects both the fiduciary andthe non-fiduciary between the managers and the stockholders.The nonfiduciary approach avoids the problem of treating the stakeholders as regularcorporate ends. This is enhanced by identifying the ethical relationship between the stakeholdersand the management that is neither too weak nor too strong. Introduction of moral reasoningconsistent with Ruder’s belief helps in protecting the legitimacy of the private sector. Theeconomic mission can be maintained provided that it is in line with the fundamental moralobligations.Section Twoa) Violation of Moral DutiesBased on the radio program, the primary Australian supermarket chains do violateprimary moral duties such as stealing and harming their suppliers. It is evident that the marginsof the food producers are squeezed by the supermarkets with the intention of attaining higherprofits ("Casualties in the supermarket war," 2013). The supermarkets have gone a step further toblackmail the suppliers who have provided evidence to the ACCC. Additionally, they request formore money that is to be spent on products to keep it longer on the shelf.b) Moral DutiesThe Australian supermarkets owe specific moral duties to its suppliers. The supermarketsshould limit themselves from harming the suppliers by squeezing their margins. They should
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