Stakeholder Theory Of Business Ethics - 2209 Words

Stakeholder theory in business ethics reflects relationships between firms, organisation and businesses in its internal and external environment (Freeman 1984). It articulates relationships effectiveness on how firm conducts its activities. You can think of a stakeholder as a person or firm that can affect or be affected by your organisation. Stakeholders are internal or external to a business and are integral for successful and ethical business. Stakeholder approach in business ethics reflects relationships between firms, organisation and businesses in its internal and external environment (Freeman 1984). It articulates relationships effectiveness on how firm conducts its activities. You can think of a stakeholder as a person or firm that can affect or be affected by your organisation. Stakeholders are internal or external to a business and are integral for successful and ethical business has several characteristics that identify this approach. What is a stakeholder approach and wha t is the theory and reasoning behind it. Internal Stakeholders consist of Employees, Manager and owners, while external consist of Suppliers, Society, Government, Creditors, shareholders and customers. (Study.com) There are several characteristics that identify a Stakeholder approach according to R Freeman and McVea paper produced in 2006. The stakeholder approach is a single strategic framework to that has the flexibility to adapt to shifts to business environment. It is a strategicShow MoreRelatedCorporate Social Responsibility1015 Words   |  5 Pagescreate distinctive, long-lasting relationships with customers (Prahald and Ramaswamy, 2004; Normann, 2001) and stakeholders (Pruzan, 1998; Post et a, 2002). 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