PHIL 322 Lecture Notes - Lecture 32: Joseph Heath, Stakeholder Theory, Business Ethics
30 Aug 2018
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Document Summary
We argue that ex ante rules for deriving a hierarchy of stake- holders in the abstract is as misguided in stakeholder theory as is the presumption of the dominion of shareholders. This paper attempts to add clarity to stakeholder theory by addressing a number of straw-person objections posed by critics of the theory as well as a few friendly overextensions and distortions averred by stakeholder theory advocates. One of the most influential ideas in the field of business ethics has been the suggestion that ethical conduct in a business context should be analyzed in terms of a set of fiduciary obligations toward various "stakeholder" groups. The question posed in this paper is whether the stakeholder paradigm represents the most fruitful way of articulating the moral problems that arise in business. Outline two other possible approaches to business ethics: 1. anchored in the notion of a fiduciary obligation toward shareholders 2. focused on the concept of market failure.
