Read The Parts Of Your Textbook That Discuss The Issue

Read The Parts Of Your Textbook That Discusses The Issue Of Stakeholde

Read the parts of your textbook that discusses the issue of stakeholders, and fairness to all stakeholders. Two concepts come to mind: fairness and justice. 1. Discuss the difference between "fairness" and "justice"? Should stakeholders be treated "fairly" or "justly"? Discuss. 2. Research Milton Friedman's view of corporate social responsibility. Should corporations adopt an "integrity-based ethics" or "compliance-based ethics" when dealing with stakeholders? Discuss your response. Substantiate your all your comments and responses. Avoid the use of Wisegeek, NetMba, Wikipedia, excessive use of dictionaries and encyclopedias, and sources of that nature, which are not considered reputable sources, when substantiating your comments and responses. Stanwick, P. A., & Stanwick, S. D. (2014). Understanding business ethics (2nd ed.). Thousand Oaks, CA: Sage.

Paper For Above instruction

The concepts of fairness and justice are fundamental to ethical considerations in business, especially regarding how organizations engage with their stakeholders. While they are often used interchangeably, fairness and justice embody distinct principles that influence ethical decision-making and corporate responsibilities. Understanding these differences is essential for developing ethical strategies that respect stakeholders' rights and promote equitable treatment.

Fairness primarily focuses on impartiality, equitable distribution, and the subjective perception of being treated equally. It emphasizes the idea of giving each individual what they deserve or need based on specific circumstances. For instance, fair treatment might involve providing opportunities or resources proportional to stakeholders' contributions or needs, even if such treatment is not identical for all. Fairness often involves a sense of balance and equality that is context-dependent, adaptable to unique situations and relationships.

Justice, on the other hand, refers to the adherence to moral and legal principles that govern right and wrong. It is grounded in the idea of moral righteousness and the fairness of systemic processes. Justice encompasses concepts such as distributive justice—fair allocation of resources—and procedural justice, which ensures that the processes governing decision-making are fair, transparent, and unbiased. Justice demands that moral standards and laws are upheld consistently, fostering trust and legitimacy in organizational practices.

When evaluating whether stakeholders should be treated fairly or justly, it is essential to recognize that justice provides the moral foundation for fairness. Justice demands that stakeholders are not only treated equally but also according to principles of righteousness and moral correctness. For example, ensuring fair wages to employees aligns with distributive justice, acknowledging their contribution and rights. Likewise, transparent decision-making processes exemplify procedural justice, fostering stakeholder trust.

Corporate social responsibility (CSR) theories, notably Milton Friedman’s perspective, further illuminate this discussion. Friedman famously argued that the primary responsibility of business is to maximize profit for shareholders within the bounds of law and ethical customs. He viewed CSR initiatives or stakeholder considerations beyond legal obligations and shareholder interests as potentially problematic, risking undue interference in business operations. Friedman's stance promotes a compliance-based approach to ethics, emphasizing adherence to laws, regulations, and contractual obligations as benchmarks for responsible corporate conduct.

Contrasting with Friedman's view, an integrity-based ethics approach advocates for aligning corporate actions with core moral values and ethical principles, emphasizing honesty, fairness, and respect for all stakeholders. This approach fosters genuine stakeholder trust and promotes sustainable business practices. It involves proactively engaging stakeholders, considering their interests, and ensuring that actions are morally justified beyond mere compliance with laws. This perspective recognizes that corporations hold intrinsic responsibilities not only to shareholders but also to employees, communities, customers, and the environment.

In my view, incorporating an integrity-based ethics approach is more appropriate in modern corporate contexts. This approach encourages organizations to transcend legal minimums and embrace moral virtues, fostering genuine stakeholder relationships. Ethical leadership rooted in integrity can lead to long-term success, reputation enhancement, and societal trust. While compliance-based ethics ensures legal adherence, it might neglect the moral dimensions essential for stakeholder well-being. Therefore, a hybrid approach rooted in integrity that respects legal frameworks can cultivate ethical excellence in stakeholder management.

In conclusion, while fairness and justice guide ethical interactions, justice provides the foundational moral principles that inform fair treatment. Organizations should aim to treat stakeholders justly, aligning actions with moral standards and principles of equity, transparency, and respect. Additionally, embracing an integrity-based ethical approach aligns with contemporary expectations for responsible business conduct, fostering trust, sustainability, and positive societal impact. Ethical corporate behavior rooted in justice and integrity offers a pathway to sustainable success and societal trust in an increasingly complex business environment.

References

Stanwick, P. A., & Stanwick, S. D. (2014). Understanding business ethics (2nd ed.). Thousand Oaks, CA: Sage.

Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.

Crane, A., Matten, D., & Spence, L. J. (2014). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Bowen, H. R. (1953). Social responsibilities of the businessman. Harper.

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Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business & Society, 52(4), 469-485.