PROJECT ON

Demonstrating the ethical view of a

company according to stakeholder theory
whether that's justified or not.
PHI 401: BUSINESS ETHICS
Sec 11 Fall 2020

Submitted to: Submitted By:

Barrister Afroz Imtiaz Anika Tabassum 1620823030
Department of History and Philosophy Fahmida Rahman 1712562030
Zeba Khan 1731911030
North South University Md Sharif Uddin 1812697630
Noman Ahmed 1811190630
Afia Zaheen Chowdhury 1813580030
Moumita Saha Puja 1821075030
Sanjida Samiha 1821338030
Contents
Introduction....................................................................................................................................2
Stakeholder Theory.......................................................................................................................2
Parts of Stakeholder Theory.........................................................................................................2
Utilitarianism.................................................................................................................................3
CSR.................................................................................................................................................3
Influences........................................................................................................................................3
Morality..........................................................................................................................................4
Ethical Theory................................................................................................................................4
Development of Ethical Theory....................................................................................................4
Globalization..................................................................................................................................5
Sustainability..................................................................................................................................5
Sustainable Development..............................................................................................................5
Employee Rights and Duties.........................................................................................................5
Company Requirement.................................................................................................................6
Ethical Issues, Marketing & Consumer.......................................................................................7
Conclusion......................................................................................................................................8
Contribution Table........................................................................................................................8
References.......................................................................................................................................8
Introduction

While directing the business Globalization, Morals, Ethics, Sustainability assumes an imperative
job. These components assist to help the investors or any other industrialist to finding out the
difference between what is right or wrong. Different elements shows our moral or ethical and
unethical or deceptive conduct.
Business firms settle on choices dependent on explicit circumstances, exercises, conditions
where issues of good and bad should be tended to fittingly. The business can possibly assist our
general public with annihilating destitution, set up training, look after manageability, and so forth
Globalization makes social, monetary, political trades between individuals and association, here
and there even without actual contact. In this report, we'll be examining the showing of the moral
perspective on an organization as indicated by partner hypothesis and its legitimization

Stakeholder Theory

The thought of shareholders comes to mind when we talk about a private or public company,
from the perspective of monetary calculation. However, from the perspective of ethics and
sustainable way of doing business it’s not just shareholders but also the stakeholders that have an
impact over the process of doing business. Stakeholders can be anyone who is affected or can
have an impact over the process of an organization, also in simpler words the person who has a
stake in it is a stakeholder. This was the result of different theorists taking interest in stakeholder
theory. The importance of a sustainable goal leads to the stakeholder theory, which is the road
map for any business to reach their fullest potential. (Bhasin, 2020)

Parts of Stakeholder Theory

Despite the different points of views between theorists regarding who has a say in organization
and who does not. It states the obvious that stakeholder theory itself holds the key to the
stakeholder’s impact through fiduciary relationship. (Andrew and Dirk, 2017)
The relationship between stakeholder’s impact and importance comes to light on the basis of
globalization. Despite the arguments laid out by Freeman how it’s not legally binding and the
ownership factor, due to the globalization factors a company comes under obligation to a
massive group of stakeholders. (1984)
Effect of stakeholder:
There are few models in place like stakeholder democracy and corporate governance, which
indicates the influence of stakeholders and regulation to address stakeholder rights. If a company
abides by the traditional stockholder model it will never allow the company to achieve their
ultimate goal. Despite the ownership factor stakeholder like customers, suppliers, retailers, civil
society, government, competitors have an effect on how a company will survive its course. 
For example, the success of a company is usually measured by the number of sales and
customers being one of the stakeholder of a company. If the company is producing in a European
country, who holds a distinctive perspective towards child labor. The company which is making
their products through child labor will be criticized by the European customers and they might
decide stop purchasing their products. 
Importance of stakeholders:
If we are talking about the importance of stakeholder theory, it is impossible to leave the fact out
how this is making the idea of embracing sustainability. The stakeholder theory is the way of
improving business or corporations to adapt to a sustainable way of doing business. Stakeholders
give the company a complete outlook on how a company can reduce risk. We already have
talked about how the success of a company depends on stakeholders.
For example, a company has decided to incorporate sustainable products into their operations,
which takes into account their stakeholder. This act of sustainability is going to promote that they
are thinking for the betterment of its stakeholders, which will satisfy the stakeholder’s
expectations. It will motivate employees to work, improve reputation which will allow the
company to reach their full potential.

Utilitarianism

Utilitarianism is a morality emphasized normative theory which articulates promoting actions

based on positive characteristics and attributes of happiness, optimism, satisfaction and
exuberance. This particular theory disregards any probable implications of melancholic or
detrimental perspective in any organization. The main motive of utilitarianism to maximize the
positive aspects and attributes for all the stakeholders with necessary responsibilities and to
minimize the negative emotions of sorrow, pain and dissatisfaction for the well-being of the
organization as a whole. This theory promotes the analogy of implementing the maximum
amount of good for the stakeholders in the business.
There are two types of utilitarianism theories classified as rule and act. Rule utilitarianism
focuses on the benefits and well-being of the stakeholders with valid justification and
rationalization. Act utilitarianism focuses on implementing ethical and moral incentives for the
benefit and overall well-being of the organization. It does not promote discrimination in the
workplace and the happiness of all the stakeholders are considered on an equivalent basis.
With the primary goal of maximizing the wealth of shareholders or attainment of profit for
business, organizations should equivalently focus on utilitarianism as it will induce a sense of
positivity, hope and optimism for all the stakeholders enabling them to utilize their maximum
potential implementing utmost productivity in the workplaces. There is no scope of
discrimination, individualism or egocentrism in this theory to enhance on equity and impartiality.
For example: A set of disabled or mentally unstable children can be provided with financial
assistance for the betterment of their future, if proper funds are allocated and legal actions are
taken to arrange specific educational institutions for them with additional training to build them
to be responsible human beings. 

CSR

Corporate social responsibility emphasizes on adaptable, conscience based and malleable

business classifications and strategies in which an organization is obliged to be socially liable,
accountable and responsible for the stakeholders and the whole unified team. The major
obligation of CSR is to improvise on the societal perspective and environmental upgrades of an
organization so that economic, social and environmental aspects are given prominence. For
example: The Coca cola company focuses on sustainable packaging and planned to implement a
world without waste through their global sustainability visualization. CSR can be categorized in
four ways:
 
1. Environmental CSR: Environmental CSR focuses on the obligations to protect the
environmental aspect of a business and its commodities. The ulterior motive of this aspect is to
decrease any environmental harm for a business such as recycling incentives, making efficient
use of water and electricity etc.
2. Philanthropic Responsibility: Philanthropic CSR emphasizes on making necessary donations
or implementing funds for the betterment of the organization as a whole. It is usually provided
on humanitarian grounds or on the basis of charity or financial assistance.
3. Ethical responsibility: Ethical CSR emphasizes on the needs and requirements of the
stakeholders without the motive of profit or discrimination. Equivalent amount of salary is
provided and commodities are implemented for justified use.
4. Economic responsibility: Economic CSR represents a cumulative combination of
environmental, financial and philanthropic perception. It emphasizes on profit, business
development and sustainable characteristics

Influences

Companies can influence the shareholders interest providing profit estimates and meeting or
beating thirds estimates.  
We need to gather knowledge gather knowledge about the ethical decisions making framework
to describe the influential aspect of stakeholder theory 
Ethical decision making framework:
In everyday life we need to make certain decisions. To make those certain decisions we need to
be concerned about ethics in all levels of life.  Sometimes it’s difficult to make a decision
recognizing the right and wrong and it may be related to individual context. But it first provide
the summary of ethical thinking and then the framework for decision making 
Steps of the ethical decision making process:
    • Define the ethical issue 
    • Identify right and justice 
    • Making moral judgment 
    • Character and integrity 
    • Thinking creatively in certain situations 
Individual influences on ethical decision making:
    • The influence of the corporate culture: values beliefs goals that the members shares among
them self 
    • The influence of the behavior: ethical and moral behavior among the members 
    • The influence of personal values: each and every members have their own and distinctive
values 
    • The influence of the individual genders: gender also play role in ethical decisions. It is said
women are more ethical then men. Experience also influence the decision 
    • The influence of individual education: the one with more education are likely to take more
ethical decision 
    • The influence of individual experiences: experienced people are more honest towards their
jobs. 
Situational influences on ethical decision making:
    • Culture: the individual culture and learning helps to take ethical decision 
    • Moral and ethics: character of an employee such as honesty, integrity, fairness help one to
take ethical decisions 
    • Reward: the employees being rewarded will motivate them to take ethical decisions for the
organization. 
    • Organization norms and culture: the organization with normal and culture helps the
employees to take ethical decision 

Morality

Ethical Theory

Development of Ethical Theory

In an organisation the ethical values are maintain by the employees and the members of that
organisation. It is seen that different organisation follow different ethical values. Development of
the ethical theory depends on the culture, environment, and values of the individual organisation.
Organisational ethics focus on the focus both on the individual and group
If we look at the ethical values around the world we see that different county follows different
ethical theory. In Bangladesh most of the organisation are seen giving more priorities to the
religion and the culture. All the organisation follows the Islamic religion mostly like giving
holidays during Eid, end offices before iftaar they also do gives priorities to the other religions.
There is no organisation in Bangladesh which does their business against the religious rules and
culture of the county
But in other country these things are not same they follow their own culture and religion. In the
first world country it is seen that they don’t have the culture that we have and as a result they
don’t give special priorities to any such religion and culture. Every country follows its own
culture and the business are run according to that culture and ethical values.

Globalization

Globalization isn’t about Internationalization, Liberalization, Universalization or Westernization.

It's all about deterritorialization. Whenever we are thinking about globalization issues that means
we don't have any territorial base. So, if we don't have any territorial base, then employees can
participate in different regions and they can also do whatever the company requires them to do
.In  case of globalization, we have to maintain cultural issues, legal issues, accountable issues.
For deterritorialization, we have to deal with what culture we are going to, what is the legality of
culture, how the legal options are applicable to us, where we are accountable for this.
 
Globalization Issues:
Cultural Issues:
As business corporations interact with people worldwide, they come across various and
sometimes opposing ethical demands from whoever they are interacting with. Every society has
its own set of culture, moral values, and principles to differentiate right from wrong.
 
Legal Issues:
A strong business ethic can help businesses quickly cross any legal hurdles across different
regions. Due to globalization, this positive impact on the economy may be lost as the income
generated, may be taken away from one area to another. Thus, governments are continually
trying to develop better rules and regulations, creating more hurdles.
 
Accountability:
Corporations become powerful as economic activities go global and with government failure, it
takes the political role. Thus, corporate accountability arises with democratic gain. A
Bangladeshi bank was incorporated as a public limited company under the Companies Act 1994,
but it later became a private commercial bank.
 
For example in Bangladeshi context, we can see that the five-star hotel in Bangladesh, although
owned by a public limited company partly owned by the government, is run by the world's
leading international hospitality chain. This, in turn, creates more jobs in Bangladesh and
improves the living condition of the employees. The foreign earning and investment that comes
from the hotel impacts the Bangladeshi economy positively. After a business achieves global
reach through globalization, it should target to cement its position in the global economy, and
that is where sustainability comes in.

Sustainability

It is the long-term maintenance of systems according to an economic, social and environmental

perspective. There are three components of sustainability, such as -Economic, Social, and
Environmental. Three components of sustainability represent in terms of a goal for business
ethics.
                  
Triple Bottom Line:
                                  
Economic:
Focuses on the corporation's economic performance for a long-term in share price, revenues, etc.
Rather than short-term profits. Corporations should fund political institutions such as schools,
hospitals etc.
 
Social:
Integration of social justice such as reforming the financial system, strengthening the workers'
rights, all point to private business as one key target of reform.
 
Environmental:
The sustainability concept is mostly immersed due to the environmental issue. The companies
need to look after the environment of the region where it conducts businesses in. Various
companies establish their factories in countries worldwide, and in some cases, those factories
lead to different environmental mishaps. Proper steps need to be taken not to arise, and
consumers and other stakeholders don't get enraged.
 
Example: Many companies are emphasizing on environment-friendly manufacturing. They are
trying to manage and process industrial waste to maintain a green environment. Providing
premium quality products enhanced its reputation, creating jobs and attracting employees. It
protects its stakeholders (workers, customers, government) supporting social justice.

Sustainable Development

Sustainable Development assists with addressing the necessities of the association without
bargaining people in the future morally and economically. It has impacts on the environment.
Those impacts are social, environmental and economic.
As an example we can say, if an organization or a company wants to increase their production,
they will think about increasing the working hours of employees. They will think about gathering
more manpower by recruiting new employees but they thought that will be more costly for the
company. So that they increase the working hours of employees. After months later they found
that too much working pressure is hampering their employees. They are losing intention of doing
their duties properly. Also after a period of time. And later they found out that employees are
quitting their jobs. Here we can say that the company's decision was not sustainable. But if the
company announced to give bonus salary if they work over time then the company would not
lose their employees. This is a type of sustainable development.
Based on the current situation, people are maintaining lockdown by the order of the government.
Schools and colleges are shut down. If the government reopens those educational institutions the
effect of COVID-19 will increase and numbers of death will increase too. It’s all to protect the
future generation. Also, the government canceled the JSC/JDC, SSC, HSC to protect our future
generation.

Employee Rights and Duties

https://content.wisestep.com/employees-and-employers-rights-and-responsibilities/
An employees should have this rights and duties during working at workplace-
1. Safe Environment- Employees should keep the environment neat and clean. That will
help him or her to be motivated while working.
2. Arrangements- Factories should be aware while working with chemicals for new
employees. As it is more cautious, employees should be careful while working.
3. Dressing and Activity- Employees should wear formal clothes at their workplace. Also
they should focus on their daily activity.
4. Employees should have the right to freedom of speech, job safety and protection from
sexual harassment.
5. They should have the right of privacy. 
6. There could not be any kinds of inequalities at the workplace.
7. All the information of employees should be updated on the right on time. Also companies
should protect those data.
8. Payments- Every employee should get fair and equal payments.
9. Equal Opportunities- Employees should get the chance of opportunities. And, everyone
should have the right.
10. Holidays- Employees should enjoy their holidays. Organizations should take proper
responsibility for their holidays.
11. Respect- Employees and organizations should respect each other.
12.  Performance- Company should check the performance of employees. And based on that
performance employees should get rewards. It will motivate them.
13. Right to Ask- Employees should have the right to ask. They can ask questions to get their
answers.
14. Adjustments for the Disabled- Organizations should make suitable workplace for the
disabled. They should provide proper rights for the disabled.
15. Employees should get compensation as they are working for the organization. They can
demand for medical help.
 16. Policies at Workplace- Employees must follow the policies and rules which are provided
by the organizations.
17. HR Department- An organization’s HR department can not be biased. They should
choose the perfect employees.
18. About Pension- If there is a pension option, employees should pay for the pension for
their future carrier.

Company Requirement

During recruitment or while conducting management, companies should be aware of integrating

practices that promote employee wellbeing. Stakeholder theory states that any party without
whose contribution the organization would cease to exist is known as a stakeholder, which
makes employees a key stakeholder of the company. To ensure employee interests are protected
companies can take the following initiatives into consideration:
Re-humanized Workplaces: It is a common scenario where workers are so immersed in their
individual tasks, they get so dedicated in chasing the set target that sometimes they get reduced
to mere machines that operate on the same routine every day. This can lead to employee
dissatisfaction and also reduce productivity eventually. For this reason, it is important to have
workplace harmony. There should be ample opportunities for employees to socialize and build
effective relationships with one another. There should be scopes for job enlargement and job
enrichment.

Wider Employment: Unemployment is debilitating for any country which is why companies are
liable to provide big-scale employment opportunities for individuals from all backgrounds. There
should be job opportunities for minorities and marginalized communities, while also ensuring
that others get the same treatment. 
Green Jobs: Instead of only chasing profits and high turnover rates, companies should also aim
to meet sustainability. The workplace should incorporate green practices such as reduce paper
usage, prevent littering, dispose wastage regularly, promote carpooling, and consume less energy
and minimal resources. There should also be efficiency in handling work i.e. telecommunication
workers can work from home which will help reduce gas emissions and pollution that would
have happened if these workers used transportation to get to office (Crane & Matten, 2016). 
Another important aspect of a company is that it has to ensure and maintain employee security.
Employee security protocols involve how the employees manage company information and
confidential data on the network channels. It is essential that the employees handle sensitive
information responsibly and security policies. Intensive training sessions can be organized to
ensure employees grasp the gravity of handling private information and the consequences of
mishandling passwords and other sensitive information.

Ethical Issues, Marketing & Consumer

Consumers, the end users of products and services, are crucial stakeholders of a company. For
this reason, marketing strategies should handle branding, packaging and labelling ethically. 

 Products must be designed in a way that it is safe and fit for use, which serves the
consumer’s right to efficacious products.
 Products cannot contain false, deceptive or misleading claims and they cannot promote
materialism or create artificial needs. This will serve the consumer’s right to honest and
fair communication and the right to privacy.
 While setting product price, companies must be aware not to exceed the price limit, or
adjust price with the intention of overthrowing the competition. They should keep the
price relevant to the product and the ingredients of the product, and should not exploit the
customers. This will serve the consumer’s right to fair prices right to be free from
discrimination. 
 While distributing the products, sellers must ensure that the consumers' needs are
satisfied rather than just the company building relationships with the channel
intermediaries. This will serve the consumer’s right to engage in markets and right to
make free choices.

Conclusion

Partners are pivotal for arriving at authoritative achievement. Partnerships ought to make stages
to fulfill the partner's necessities so it thinks about emphatically the organization. Along these
lines, partners need to have the most significant level of need. They are the column that holds the
whole firm, in this way, to make a moral foundation, we need to focus on their prosperity. It
builds up a confirmed impression for the organization from both the cultural and network
viewpoints. Guaranteeing appropriate worker opportunity prompts the speculators getting a solid
monetary timetable. Sufficient open door for the providers offers quality assistance for shoppers,
and this prompts making a positive authoritative picture. Along these lines, the firm meets
development. Finally, sufficient use of partner hypothesis makes a mutually advantageous
arrangement for the partners and the association in general.
Contribution Table

References
Bhasin, H. (2020). Stakeholder Theory - Six Principles of Stakeholder's Theory. Retrieved from,
https://www.marketing91.com/what-is-the-stakeholder-theory/

Crane, A., & Matten, D. (2016). Business ethics (4th ed.). Oxford University Press.
Tardi, C. (2020). Utilitarianism Defined. Investopedia. Retrieved from
https://www.investopedia.com/terms/u/utilitarianism.asp#:~:text=Utilitarianism%20is%20a
%20theory%20of,of%20society%20as%20a%20whole.
Fernando, J. (2020). Corporate Social Responsibility (CSR). Investopedia. Retrieved from
https://www.investopedia.com/terms/c/corp-social-responsibility.asp.
Corporate social responsibility: environmental impact | nibusinessinfo.co.uk.
Nibusinessinfo.co.uk. Retrieved from