Efficient Conduct of the Business - Essay Example

An organization has two common approaches to business ethics which are from shareholder and stakeholder viewpoints (Johnson and Abramov, “Business Ethics”). CSR is the responsibility of an organization for providing fair profits to the shareholders keeping in consideration the societal perspective of providing greater benefits to the communities as well. The decisions, as well as activities that are performed, should be beneficial for society and stakeholders. An organization should transparently perform operations by laws as well as standards for the benefit of society (Catalyst Consortium, “What is Corporate Social Responsibility”). Business ethics and CSR are essential elements for an organization for providing fair returns to the shareholders as well as making decisions that are to be beneficial for the stakeholders and society.

The shareholder, as well as stakeholder viewpoints of business ethics for an organization, are the essential elements for implementing appropriate ethical values. From the perspectives of the shareholders, the decisions are made to provide a fair profit on investment. Shareholders are considered as stakeholders of an organization. These ethical values will help an organization maintain a healthy relationship with the shareholders. The stakeholder perspective of business ethics is to perform activities or operations for the benefit of employees as well as society. The decisions of an organization are to be made for satisfying the needs of the stakeholders as well as these decisions have an impact on the people who are involved with the organization. Stakeholders are included among all those people who are part of an organization. The key motives of an organization are to provide fair returns to the shareholders as well as to perform its activities with ethical values which are beneficial for all those who are involved with the organization. Therefore, it is apparent that appropriate ethical decisions can be made through the shareholder or stakeholder perspective of business ethics (Pfarrer, “What is the Purpose of the Firm?: Shareholder and Stakeholder Theories”).

The shareholder perspective is mainly focused on the notion of generating profit for the organization. An organization is functioning with the motive of generating profit and the effectiveness of the organization is determined by the quantity of profit earned as well as other economic factors. The primary aim of an organization is to enhance the values of the shareholders. The stakeholder perspective should be to serve the people who are involved with the organization with due consideration to the notion of improving the health of society. This viewpoint of stakeholders should be considered a top priority above profitability for an organization. There is a vast ethical decisions difference in terms of the perspectives of shareholders and stakeholders which clashes with the profitability and responsibility of an organization (Value Based Management.net, “Shareholder Value versus Stakeholders”).

The ethical values, as well as CSR of an organization, are to perform activities or operations with the motive of providing fair profit to the shareholder as well as serving an organization by the appropriate ethical behavior. It will also help in enhanced health of the society and environment it serves. The shareholder and the stakeholder perspectives of business ethics are addressed with the motive of determining the significance of the financial success of an organization. The values which are created by the operations of an organization must be within the boundary of laws as well as standards. Both the shareholder and the stakeholder perspectives differ but the values are served with the motive of improving the lives of people who are attached to the organization as well as improving society (Pfarrer, “What is the Purpose of the Firm?: Shareholder and Stakeholder Theories”).

Shareholder and stakeholder perspectives of business ethics are essential elements for the successful performance of an organization. The shareholder perspective is to provide fair returns to the shareholders of an organization who are considered as stakeholders and the stakeholder perspective is to serve the employees as well as society in an effectual way. Both of these perspectives of business ethics are to serve the people within and outside the organization by moral standards and laws. These two perspectives are most appropriate for employing business ethics in an organization. Read More