BUS 303 Lecture Notes - Lecture 3: Legal Personality, Stakeholder Theory, Fallacy

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 303
• Professor: Kathleen Burke

Document Summary

Ethical decision making and the role of stakeholders. The myth that business considerations can be separated into purely business decisions with no ethical content and ethical decisions. Most business decisions, or statements about business, have some implicit ethical view. A discomfort with talking about ethics because o o o. Belief that it is idealistic and not practical. Shareholder theory: view that corporate officers are required to conduct business in order to further the owners" investments. Assumes that people can leave their values at home. Stakeholder capitalism (edward freeman) o o o. Stakeholder someone (or a group of people) with either something at risk in the decisions, or who legitimately expects a specific outcome . Stakeholder theory: recognizes that the nexus of interdependent relationships a corporation forms is what drives profitability. It is the corporate manager"s job to negotiate these stakeholder relationships. The stakeholder approach does not mean all stakeholders must be treated equally.