Business Ethics
...ests are number one. However, not to the extent that laws be broken and other stakeholders’ rights be violated. A great of example of corporate managers doing just that lies within the Ford Pinto case we went over in class. Consumers’ rights to life were grossly violated by Ford, solely because they calculated the loss of life to be less expensive than a recall. This was clearly a case in which managers crossed the line in upholding their duties to shareholders and would not be condoned within the corporation I am part of. As long as nothing of that nature takes place, as a manager I have a deontological duty to my shareholders. Deontology is a principle discussed in lecture and Rachel’s book I use to support this argument. As corporate manager, I have a deontological duty to make shareholder’s interests my primary concern. They have an intrinsic right to be my primary concern since, as I mentioned previously, without the formation and funding made possible by the shareholders, the corporation wouldn’t even exist. Next in the pecking order of stakeholder interests I would represent would be the environment. In these days of the soaring NASDAQ, space shuttle missions, and the internet, it is easy to forget that the environment is even a stakeholder at all. I have to admit, before this course I had been guilty of doing just that. After you taught us what constituted a stakeholder, I was quickly reminded how important the environment is. There are two primary reasons the environment receives such important representation. First, and most obvious, at this time as human beings it is all we have to survive off. The delicate balance and interrelationships of ecosystems must be respected. Thinking short term, managers commonly forget about the environment because immediate destructive outcomes to the environment are not always easy to see. This way of doing business must change. Managers don’t always realize how grand of a scale this is. We have already seen the harmful effects of o-zone depletion, acid rain, oil spills, etc. Simply because you, as a manager, and your shareholders won’t be around to be subject to the effects doesn’t make it right. This is a way of thinking and doing business that must be changed. This argument is clearly supported by the “Land Ethic” discussed in Rachel’s book and class. Without a doubt, the environment fits the definition as a stakeholder. And as stated in lecture, “our responsibility to the environment is inherent, the environment has an intrinsic value within it”(Dunn, Lecture 2/22). The second reason I represent the environment is based upon shareholder interests. Any corporation that violates environmental laws because of short term cost savings is subject to heavy monetary penalties as well as costly clean-ups if caught. These costs can dramatically effect profits; in turn, shareholder’s returns. The next stakeholder group that I represent is the consumers. If a corporation doesn’t have consumers purchasing their goods or services, they won’t be a corporation for long. Consumers provide the revenue stream necessary for a corporation to operate. The framework that comes to mind to support this stance is that of a Utilitarian perspective. When explaining Utilitarian doctrine, Rachels states, “what course of conduct would promote the greatest amount of happiness of all those who will be affected” (Rachels, 98). In this context is evident that to maximize profit and well being for the corporation makes me “happy”. To do this, I need to produce a high quality product or service reaching a point of marginal utility. In which, allowed me to satisfy shareholders, make the product affordable and desirable to customers, and compensate employees all while turning a profit. By doing this I am creating the greatest amount of “happiness” for the greatest amount of people. Another important stakeholder group I would represent would be my employees. I have been able to work in a corporation in which employees were simply used as a means to another end and we knew it. The effects were devastating to that particular corporation. It is imperative that as a manager you give your employees a feeling of self-worth and that what they are doing is an integral part of corporation’s success. Without that, employee morale is non-existent. As a manager I would strongly represent my employees interests. Their efficiency, enthusiasm, and morale play a crucial role in the corporation’s success. I would protect their interests by rewarding them...