ETHICS PROBLEMS IN ORGANIZATIONS Focus on Stakeholders. referencing Chapter 8 Trevino & Nelson, Managing Business Ethics . NY: Wiley, 1999. Understand the “stakeholder approach” to classifying ethical performance of firms.
Trevino & Nelson, Managing Business Ethics. NY: Wiley, 1999.
Understand the “stakeholder approach” to classifying ethical performance of firms.
Identify categories of ethical problems at the organizational-level based on internal and external stakeholders.
3. Appreciate the concept of “escalation” in which matters starting as small issues become crises.Objectives
Employees ethical performance of firms.
~ Internal ~
~ External ~
Groups or individuals with whom the organization has a ethical performance of firms.contractual relationship.
Customers, employees, shareholders, vendors & suppliers and government
Groups or individuals to whom the organization has obligations, but who are not contractual partners.
Community groups, citizens, other businesses, professional entities.Classifying Stakeholders
~ Primary ~
~ Secondary ~
Marketing : an exchange-based function in which relationships, trust and norms play critical roles.
As a consequence, the marketing function is fundamentally intertwined with ethical issues.
Few laws protecting consumers before 1960’s.
Pure Food & Drug Act (1906) prohibited adulteration of food & drugs.
McPherson v. General Motors gave the right to sue auto mfgs. For defective vehicles.
1962 Kennedy Principles: 4 Consumer Rights