Relationships 
                                                                                                 and Business
                          Building effective relationships is one of the 
                          most important areas  of business today
                                   Business ethics is a team sport and few 
                                        decisions are made by only one individual
                          Stakeholder framework
                                   Helps identify internal and external 
                                          stakeholders
                                   Helps monitor and respond to needs, values, 
                                          and expectations of stakeholder groups
                          Corporate governance 
                                   The formal system of accountability and 
                                          control of ethical and socially responsible 
                                          behavior
                                 © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, 
              except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.            2
                                                       Stakeholders Define 
                          Ethical Issues in Business
                          Stakeholders: Those who have a stake 
                          or claim in some aspect of a company’s 
                          products, operations, markets, industry, 
                          and outcomes
                                  Customers                                             Investors
                                  Employees                                             Suppliers
                                  Government agencies Communities
                                             The relationship between 
                           companies and their stakeholders 
                                                           is a two-way street
                                 © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, 
              except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.            3
                                                                                                    Stakeholder 
                                                                                                                                Theory 
                          Three approaches to stakeholder theory
                          Normative
                                   Principles and values help identify ethical 
                                          guidelines that dictate how to treat 
                                          stakeholders
                          Descriptive
                                   Focuses on actual behavior, addressing 
                                          decisions and strategies in stakeholder 
                                          relationships
                          Instrumental
                                   Examines stakeholder relationships and 
                                          describes outcomes for particular behaviors
                                 © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, 
              except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.            4
                                                                                                          Identifying 
                                                                                                 Stakeholders
                          Primary stakeholders: those whose 
                          continued association is absolutely 
                          necessary for a firm’s survival
                                   Employees, customers, investors, 
                                         governments, and communities
                          Secondary stakeholders: do not 
                          typically engage in transactions with the 
                          firm and are not essential to a firm’s 
                          survival
                                   Media, trade associations, and special 
                                           interest groups
                                 © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, 
              except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.            5
                                                                           The Stakeholder 
                                                                      Interaction Model
                             Source: Adapted from Isabelle Maignan, O. C. Ferrell, and Linda Ferrell, “A Stakeholder Model for 
                             Implementing Social Responsibility in Marketing.” European Journal of Marketing 39 (2005): 956–977. 
                             Used with permission.
                                 © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, 
              except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.            6