Business Ethics and Sustainability: Stakeholder Theory Analysis Report

This report delves into the realm of business ethics and sustainability, focusing on the crucial role of stakeholders. It begins by defining business ethics as the moral framework guiding firms in addressing social, environmental, and economic considerations. The report identifies stakeholders as individuals, groups, or firms with vested interests in a company, emphasizing their influence on organizational outcomes and decision-making. Primary stakeholders such as customers, employees, investors, and suppliers are highlighted, along with the significance of corporate social responsibility. The report then explores stakeholder theory, outlining its normative, instrumental, and descriptive approaches, providing a comprehensive understanding of stakeholder engagement. Furthermore, it addresses challenges associated with applying stakeholder theory, such as integrating stakeholder decisions to improve economic values and the rigidity of approaches across different organizational contexts. The report concludes by reiterating the importance of business ethics and stakeholder management for long-term market sustainability.

Business ethics and
sustainability- Stakeholder
and stakeholder theorey

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Stakeholder of organization.........................................................................................................3
Stakeholder theory.......................................................................................................................3
Challenges of applying stakeholder theory .................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
The work or duty that is performed by running business firm with respect to sustainability
is business ethics. The business have to address social, environment and economic aspects.
Stakeholder is the interested people of the company and the theory help to view the capitalism
the stress the interconnected relation of customer and firm (Rodriguez-Rad and Ramos-Hidalgo,
2018).
MAIN BODY
Stakeholder of organization
The stakeholder is the individual person, group or firm who are having their individual
interest in the company and effected by its output of the particular task. The stakeholder is trying
to maximize the profit of organization. Primary stakeholder of any organization are its
customer's, employees, investors and the supplier as well. The firm is more focused on
corporative social responsibility. The stakeholder is very important because they give financial
support and business practical they also set the future of the organization and daily activities to
performed by firm. They make decision for the company that are effectively used to achieve the
target. The stake holders are also board member, so they help in taking actions. The peoples of
stake are having major power to monitor all the activities which are been performed in the
company. Intrinsic stakeholder are mainly managed the firm, so they matter to company.
Stakeholder theory
The stakeholder theory are having a great value to business. Basically there are three
respective value that explains that the theory of stakeholder are normative, instrumental and
descriptive forms (Farmaki, 2019).
Normative stakeholder approach : As the stakeholder have existing value In the business. The
stakeholder has lawfully-begotten and they are having internal moral. The normative theory
present the justification that why organization takes interest of stakeholder.
Instrumental stakeholder approach : In this theory it explains the benefits of taking interest of
stakeholder in the organization decisions. As the stakeholder are taking all the decisions of the
company, and they are well experienced so their decision towards the firm are beneficial for the
company.

Descriptive stakeholder approach : The approach of stakeholder is to check weather the
interest of peoples in the organization are taken and how they take the interest of any particular
individual stakeholder of the organization (Bundy, Vogel and Zachary, 2018).
Challenges of applying stakeholder theory
The stakeholder is playing a great role in each organization and there are several
approaches of stakeholder to take and use the interest of stakeholder in the company. So the
organization face some challenges as well while using the stakeholder theories.
 The basic challenge is to make group of people to get that economic values can improved
by making stakeholder decision applied in work and relate them for enhance working.
 The approaches are very rigid and are not able to fix in every organization work because
the behaviour of stakeholder in every company is differed form others.
CONCLUSION
The report concludes that the business ethics are the moral value of any organization to
serve the customer's and sustain in the market for long period. The stakeholder is the main
people of any organization who are investing their money and expecting their respective return,
they are interested in the decision-making. Approaches help the organization to take interest of
stakeholders.

REFERENCES
Books and journals
Rodriguez-Rad, C.J. and Ramos-Hidalgo, E., 2018. Spirituality, consumer ethics, and
sustainability: the mediating role of moral identity. Journal of consumer marketing.
Bundy, J., Vogel, R.M. and Zachary, M.A., 2018. Organization–stakeholder fit: A dynamic
theory of cooperation, compromise, and conflict between an organization and its
stakeholders. Strategic Management Journal. 39(2). pp.476-501.
Farmaki, A., 2019. Corporate social responsibility in hotels: a stakeholder
approach. International Journal of Contemporary Hospitality Management.
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