History of Business Ethics and Stakeholders

As the top supervisor, the CEO is normally in charge of the entire operations of the enterprise and reports directly to the administrator. It is the CEO’s obligation to bring the concepts and vision of the board to fruition. Another important task or obligation is to make sure that there is always a smooth operation of the firm, with the help of administration. It is also common for the CEO to be assigned as the leader of the organization; and will be one of within chiefs on the board (Carter, Ulrich, & Goldsmith, 2005). 

CEO’s have the responsibility of satisfying and supporting various groups and organizations that they depend on for their thriving existence. They tend to balance the business owner, stockholder and shareholders’ interests that come in the form of profits. They are responsible for balancing shareholder and stakeholder’s business interest. Stakeholders, unlike shareholders, tend to give more focus and concentration to corporate obligations instead of corporate profitability (Carter, Ulrich, & Goldsmith, 2005). They believe that the endeavor of an association should be to strive to accomplish fulfillment among all parties involved, instead of exclusively seeking the highest profits. CEOs help bring balance between profits and stakeholder concerns in the following ways;

(1) They maintain a high-performers leadership panel from stakeholders to the CEO’s position.

It has to be the understanding of high performing organizations that execution happens at the foundation or ground level. It is the line directors, chiefs, and center administrators who get things going. In cases where the CEO doesn’t push his or her administration methodology down adequately, it won’t be embraced and followed through on. It has been proven that the best organizations create and develop effective leaders from the bottom up.

(2) Focus on market positioning through long-range strategic planning.

The CEOs, together with other management team members, have to focus their job abilities on maintaining a strong market position through long-range strategies such as the offering of after sale services which attract new customers and at the same time keep the existing customers intrigued and engaged. A good example is where Toyota Car Company offers free car service to their new customers for the first three months.

(3) CEOs encourage the involvement of business in community services and extra curriculum activities.

Through such activities, the CEO can give back to its stakeholders; such as the business environment and community around. Creation of refreshment events such as sports tournaments creates bonding opportunities between the organization and its stakeholders. This helps improve its commercial activity that raises profits (Carter, Ulrich, & Goldsmith, 2005).

(4) The CEO ensures that employees are better propelled and more profitable. 

They will expect them to work with a motivated morale compass; hence aiding the business to realize this state of balance in a much easier way. When a business has a decent reputation, it makes it less demanding to recruit workers. Employees might stay longer, reducing the expenses and disturbance of having to constantly hire and retrain.

(5) The business leader has to assist the business in determining its social responsibility in its community.

 Doing so will help it to comply with administrative requirements and necessities. Activities such as involvement with the nearby community groups are perfect chances to produce positive press coverage; thus making it a great marketing strategy. Great associations with nearby movers and shakers make working together easy. The more a business understands the importance of having a more extensive effect within the community, the better it gives focus to offering assistance with developing new items and administrations with others. Social responsibility can make a business more focused and reduces the danger of sudden harm to its reputation. The balance between making profits and catering for stakeholder’s welfare can thus be achieved easily.

Competition is the rivalry among business organization and premises trying to achieve goals such as maximizing their profits, increasing market shares, or sales volume. They do so by varying the market mix elements such as price, product, distribution, and promotion. However, some business premises engage in unethical and unfair business practices. They choose to cheat in an effort to win a competitive gain or advantage over their business rivals (Dinwoodie, & Janis, 2011). One example of an unfair competitive practice is when a business has below-cost sales to grab the attention of and attract more customers. Customers are always happy with this type of practice because it allows them to pay a much lower cost for the same product. Another example is when businesses sell imitation products to consumers. 

The counterfeit products are not of good quality even though they ae marked the same prices as the better product. My last example is when companies have misleading advertisement that makes promises about products that it cannot live up to. The examples described are bad practices that tend to reduce the business equality and results to consumer exploitation. These practices should not be tolerated. The current market is saturated with businesses that conduct unethical practices and competitions. To be honest, this is sad and very unfortunate. When this is done, the consumer is left being mistreated and misused. In the end, consumers are the ones being charged extra costs. These types of standards and practices should be done away with. Laws should be put into place that would cause hefty fines to businesses .

Welfare Capitalism was a methodology that encompasses large organizations needing to allow employees to have buy-in. Doing so could prevent a potential strike, maintain a strategic distance from Uniontmediation, and keeptprofitability high. As this began, businesses raised wages, gave paid vacations, allowed for health plans, and ithey additionally gave after work services to the workers.

  1. It results to industrial paternalism- welfare capitalism leads to industrial paternalism which refers to the practice of businesses providing welfare-like services to employees. It ensures that the employees are treated and handledtwelliby the organizations.
  2. It has resulted in the combination of the capitalist economic system with a welfare state. It has made organization develop a two-fold interest in providing services.
  3. It has made employees receive benefitstfrom the organization they work for thus improvingttheir living standards .

 

Howard Bowen, in his book The Evolution of Social Responsibility of Businesses, predicted that many if not all businesses at one point will be inclined to distinguish its social responsibility in the society. He predicted that it would reach a point when organizations will strive towards being able to maintain a good reputation to the public while also making a profit. Bowen’s prediction is definitely a reality because many businesses and organizations are engaging themselves in social activities faster than in times past. It been seen time and time again that businesses will go an extra mile trying to impress their customers. Building a reputation for being a dependable business separates a business entity from the rest. Organizations frequently support suppliers who have mindful arrangements. This is because it can positively affect how they are seen by their customers. Some customers don’t just prefer to deal with responsible companies but insist on it . 

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History of Business Ethics and Stakeholders. (2021, Oct 14). Retrieved October 27, 2021 , from
https://studydriver.com/history-of-business-ethics-and-stakeholders/

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