Ethics and Corporate Responsibility in the Workplace and the World

PharmaCARE maintains a large manufacturing facility in the African nation of Colberia. There, the company has found several "healers" eager to freely share information about indigenous cures. In addition, an abundance of Colberians are willing to work for $1.00 a day, harvesting plants by walking five (5) miles into and out of the jungle carrying baskets that, when full, weigh up to fifty (50) pounds. Due to the low standard of living in Colberia, much of the population lives in primitive huts with no electricity or running water. PharmaCARE's executives, however, live in a luxury compound, complete with a swimming pool, tennis courts, and a golf course. PharmaCARE's extensive activities in Colberia have destroyed habitats and endangered native species.

Key characteristics of a stakeholder

A stakeholder is an individual or group of individuals who can affect or be affected by the actions of a business. Stakeholders usually have a legitimate interest in a business entity and its activities. Without the support of the stakeholders, the organization would cease to exist. The concept of the stakeholder includes everyone with an interest in what the entity does.

Internal stakeholders are individuals within a business who work directly within the business, such as employees, owners, and investors. In the PharmaCARE scenario, the owners are stakeholders because they desire to efficiently maximize the profit the business makes. Investors are mainly concerned about earning a return on their investment. The Colberian employees, both the healers and harvesters, are interested in earning (high) wages, remaining in their jobs, and making a living for themselves and their families. The employee is arguably the most important stakeholder. While employees are in a subservient position to the organization, it is the employees who provide the necessary labor for the business to thrive.

External stakeholders are individuals outside of a business who are not directly working...