The Ethical Imperative: Managers and Stakeholder Responsibility

This essay argues that organizations have a responsibility towards every stakeholder, not just shareholders. It begins by introducing the concept of stakeholders and their contributions to an organization's success, asserting that managers are liable to all stakeholders. The essay then presents arguments against this view, emphasizing the prime responsibility of managers to balance the interests of shareholders and investors by generating profits. However, it counters with arguments in favor of broader stakeholder responsibility, highlighting the contributions of employees, the environment, and consumers. The essay further discusses the increasing importance of corporate governance, environmental responsibility, and providing safe products and services. It concludes by emphasizing the need for compliance with laws, transparent reporting, and considering the interests of all stakeholders, advocating for fair accounting practices and transparency to serve the wider interests of all stakeholders involved.