Corporate Governance and Ethical Responsibility Research Paper

Stakeholders

A stakeholder is a person, an organization or a group that has direct or indirect vested interest in an organization because it can affect or be affected by the organization's actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

Internal and External Stakeholders

Internal stakeholders are closest to the company and have a direct monetary stake in the success of the business. Internal stakeholders include employees, managers, customers and shareholders. External stakeholders have a less direct interest in the company and include regulatory bodies and society. The list of stakeholders for each organization will vary depending on its structure and the work it carries out. For academic institutions, internal stakeholders include faculty and students, while doctors, nurses and patients are internal stakeholders for health care providers (Lynne).

Duty of Loyalty

The employee duty of loyalty requires the employee to act solely for the benefit of the employer in all matters related to his or her employment. This general principle prohibits an employee from competing with an employer; appropriating the employer’s personal property or soliciting customers away from employer while in the employ of the employer. The department managers are representative of hospital management therefore, the duty of loyalty is much higher. It prohibits manager from activities (decisions) that benefit themselves at the expense of the company or imped the ability of a corporation to continue the business for which it was established.

Internal and External Stakeholders for D. DoRight

The internal stakeholders for Dr. DoRight are Employees (staff of the hospital including medical, legal, human resources, business development and other support staff), Board of...