Stakeholder Relationships, Socialresponsibility, and Corporate Governance

CHAPTER 2

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Stakeholder

Relationships, Social

Responsibility, and

Corporate Governance

CHAPTER OBJECTIVES

CHAPTER OUTLINE

◆

To identify stakeholders’ roles in business ethics

Stakeholders Define Ethical Issues in Business

◆

To define social responsibility

Identifying Stakeholders

◆

To examine the relationship between stakeholder

orientation and social responsibility

A Stakeholder Orientation

◆

To delineate a stakeholder orientation in creating

corporate social responsibility

◆

To explore the role of corporate governance in

structuring ethics and social responsibility in

business

◆

To list the steps involved in implementing a

stakeholder perspective in social responsibility and

business ethics

Social Responsibility and the Importance of a

Stakeholder Orientation

Relationship Between Social Responsibility and

Profitability

Social Responsibility and Ethics

Corporate Governance Provides Formalized

Responsibility to Stakeholders

Views of Corporate Governance

The Role of Boards of Directors

Implementing a Stakeholder Perspective

Step 1: Assessing the Corporate Culture

Step 2: Identifying Stakeholder Groups

Step 3: Identifying Stakeholder Issues

Step 4: Assessing Organizational Commitment to

Social Responsibility

Step 5: Identifying Resources and Determining

Urgency

Step 6: Gaining Stakeholder Feedback

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AN ETHICAL DILEMMA*

Carla knew something was wrong

when Jack got back to his desk. He

had been with Aker & Aker Accounting (A&A) for seventeen years, starting there

right after graduation and progressing through the

ranks. Jack was a strong supporter of the company, and

that was why Carla had been assigned to him. Carla

had been with A&A for two years. She had graduated

in the top 10 percent of her class and passed the CPA

exam on the first try. She had chosen A&A over one of

the “Big Five”...