The History Of Business Ethics And Stakeholder Theory In Ame

The History Of Business Ethics And Stakeholder Theory In Americabased

The assignment requires a comprehensive analysis of the responsibility of top leadership in large organizations regarding balancing profits and stakeholder concerns. It asks for supporting examples, whether from the text or other credible sources, illustrating effective or poor management in this regard. Additionally, it involves discussing the historical evolution of business ethics in America since the late 1800s, with emphasis on unethical practices such as anti-competitive behaviors, immoral alliances, regulatory non-compliance, and lack of transparency, and evaluating whether current conditions are better or worse for businesses. The paper should also examine Howard Bowen's predictions about social responsibility since 1953, assessing their accuracy over time. The final submission should include a title page, a 4- to 5-page main body, and a reference page, formatted according to APA style, with double-spacing and 12-point font. The total document length should be between 6 and 7 pages.

Paper For Above instruction

Analysis of Business Ethics and Stakeholder Theory in America

The responsibility of top leadership in large organizations is multifaceted, especially in balancing the goal of maximizing profits with the need to address stakeholder concerns. Leaders such as CEOs are tasked with ensuring that their organizations remain profitable while also maintaining ethical standards and addressing the needs of employees, customers, communities, and the environment. Effective leadership recognizes that long-term profitability is often intertwined with sustainable stakeholder relationships. For example, Unilever's CEO Paul Polman prioritized sustainability and ethical practices, which ultimately enhanced brand loyalty and profitability (Unilever, 2017). Conversely, poor leadership is exemplified by Wells Fargo's 2016 scandal, where aggressive sales targets led to widespread unethical behavior, damaging the company's reputation and financial standing (Corkery & Cowley, 2016). These examples emphasize that responsible leadership involves transparent communication, adherence to legal standards, and a commitment to ethical practices that support sustainable stakeholder relationships.

Historically, American business practices since the late 1800s have often been characterized by unethical behaviors. Terris (2014) outlines how businesses engaged in anti-competitive practices, sought unfair advantages through corrupt alliances with suppliers and public officials, and frequently ignored legal and regulatory frameworks. These behaviors undermined public trust and often resulted in economic crises or systemic scandals, such as the stock market crash of 1929 and subsequent regulatory reforms like the Securities Act of 1933. Over time, there has been a shift towards increased transparency, regulation, and social accountability. However, issues such as corporate lobbying, environmental negligence, and egregious disparities in income and working conditions still persist (Sternberg, 2020). In the present day, some argue that the environment for ethical business is better due to stricter legal enforcement and societal expectations, but critics contend that unethical practices continue, often hidden within complex global supply chains.

Howard Bowen's ideas, discussed by Terris (2014), projected that businesses would evolve towards greater social responsibility. Bowen (1953) predicted that economic and social forces would influence organizations to address societal needs beyond mere profit motives. His vision included businesses adopting social obligations proactively, fostering ethical cultures, and contributing positively to society. Looking at the trajectory since 1953, evidence suggests that Bowen's predictions have largely held true. The rise of Corporate Social Responsibility (CSR), environmental sustainability initiatives, and the integration of ethics into corporate governance reflect this shift (Carroll & Shabana, 2010). Companies like Patagonia and Ben & Jerry’s exemplify how businesses today proactively pursue social and environmental goals. Nevertheless, critics argue that some corporations only engage superficially in CSR to enhance brand image, indicating that Bowen's ideal of authentic social responsibility remains a work in progress.

In conclusion, the role of top leadership in balancing profit with stakeholder interests remains vital in shaping ethical corporate behavior. While progress has been made since the late 1800s—marked by reforms, increased transparency, and a broader understanding of corporate social responsibility—challenges persist. The evolving landscape suggests that ethical conduct depends heavily on leadership commitment and societal governance. Bowen’s predictions about the increasing importance of social responsibility have largely come to fruition, yet the depth of true corporate ethics varies across organizations. Continued vigilance, regulation, and cultural shifts are necessary to ensure that corporate responsibility aligns with societal expectations and sustainable development goals.

References

• Bowen, H. R. (1953). Social Responsibilities of the Businessman. Harper & Brothers.
• Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research, and Practice. International Journal of Management Reviews, 12(1), 85-105.
• Corkery, M., & Cowley, S. (2016). Wells Fargo fined $185 million for fraudulently opening accounts. The New York Times. https://www.nytimes.com/2016/09/09/business/dealbook/wells-fargo-fined-for-years-of-harm-to-customers.html
• Terris, L. (2014). The history of business ethics in America. In Business Ethics: Readings and Cases in Corporate Morality (pp. 35-50). Pearson.
• Sternberg, E. (2020). Corporate Social Responsibility: A Very Short Introduction. Oxford University Press.
• Unilever. (2017). Unilever Sustainable Living Plan. https://www.unilever.com/planet-and-society/