Essay: Business ethics opinions (stakeholder theory)

Mike believes in the ethics culture is importance of business ethics. ‘As a top management can serve as role models for the organization to exhibit high ethical perform and should proactively develop an ethical organizational culture, and that organizations with ethics problem should take a culture approach to solving them'(Trevino and Nelson 2007). Thurs, as a top management can serve as role models for the organization to exhibit high ethical performance. As Mike belief, if we have good decisions maker for the company high-level management, it can create a normative and ethical company.
Jan has similar belief as Mike with the ethical cultural leaders. She believes leaders should draw on their business knowledge and resources to enhance social welfare. There is no conflict between being ethical leaders and shareholders as long as profitability could be maintained. Jan uses her own success as a great role model to the other fund-raising company in Guatemala. She is trying to act as a moral leader to the graduates and being utterly focused on profitability at the same time.
Mei Hua thinks that ethics are defined by compliance with rules and codes. There is tension from shareholders as discharge of corporate social responsibility that is traded off from the shareholders’ wealth for charities. Mei-Hua is kind of the cultural change approach. She thinks everybody should stick to strong guidelines from their managers. She is happy with evade tax as well if it is in the rules.
Deshi thinks ethical leadership is a waste of time, as people are given a “free moral compass”. The cultural learning model with employees allowed to think independently, however negative. Deshi does not believe in possibility of ethics. He thinks that code of ethics is only a stumbling block for the success of business. He believes leaders’ should make good decisions to filter down to create a normative and ethical company.
According to Business ethics textbook wrote by Crane & Matten (2010) using Kohiberg’s Lawrence of Kohlberg’s stages of moral development (Kristin Wood, 2003) (Kohlberg, 1969), those four people in the debate can be determined as follow:
Mike is Utilitarian, post-conventional level, stage 6. Mike was belongs to utilitarian and virtue styles. He strongly believed in ethical value and influences this value throughout the organization.
In the reality, there is a big the difficulties between running business and teaching in the school.
Jan is Utilitarian, post-conventional level, stage 5. She sticks with the Stakeholders theory, which means she is utilitarianism. As she is a CEO and a Christian, she wants to make everyone happy including both the shareholders and the public.
Mei-Hua is Egoist, pre-conventional level, stage 2. Mei-Hua believed to base on shareholders theory that she wants shareholders to get more profit. Mei-Hua was at the pre-conventional level that places emphasis on reward, punishment and individual gain (Crane & Matten, 2010) .
Deshi is Egoist, pre-conventional level, stage 1. Deshi is a middle-class lifestyle Chinese boy with belief that Ethical leadership should be powerful, everyone must be listening to him without justify that he is right or wrong. Deshi is egoistic and places emphasis on reward, punishment and individual gain (Crane & Matten, 2010).
In conclusion, based on Stakeholder theory states that a company owes a responsibility to a wider group of stakeholders, other than just shareholders. A stakeholder is defined as any person affected by the actions of a business. It includes employees, customers, suppliers, creditors and even the wider community and competitors. As a successful leader, he or she should take care of their stakeholders’ benefits, but it is not meaning that they are not a business ethical person.
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