Accounting Theory- Stakeholders Essay example

1221 Words Jun 28th, 2016 5 Pages
Question: Taking into account Figure 3.4 on page 45 of your textbook (Stakeholder Typology: One, Two, or Three Attributes Present) discuss the ‘Ethics in Practice case’ on page 46 (Are Plants and Flowers Stakeholders? Do they have rights?)
Freeman (1984, P. 46) popularized the definition of a stakeholder as ‘. . . ANY group or individual who can affect or is affected by the achievement of the organization’s objectives’. This is a very broad definition meaning that in today’s global business environment any individuals and groups may be business’s stakeholders (Davey, 2015). This sparks the debate about whether or not the natural environment can be identifiable as a stakeholder. In the ethics in practice case ‘Are Plants and Flowers
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Although this can be viewed as being a step to promote a sustainable future it could also be viewed as being too extreme. One Swiss scientists exclaims…where should the line be drawn?…should the dignity of microbes be defended too? (Davey, 2015). One of the complications raised in considering the natural environment a stakeholder is that it does not have a mind and cannot have needs as humans understand them (Orts and Strudler, 2002)
Haigh and Griffiths (2009) review the debate about whether the natural should be regarded as a primary stakeholder. They contend that the natural environment can be viewed as a primary stakeholder by combining the stakeholder identification framework of Mitchell et al. (1997), suggesting that stakeholders have a mixture of legitimacy, power and urgency. They argue that the natural environment can be identified as a primary stakeholder when the potential strategic impacts of climate change are examined (Haigh & Griffith, 2009). Climatic changes are resulting in increasingly irregular weather patterns which can damage business infrastructure, resources, products and market resulting in power, legitimacy and urgency because business’ have a dependence on the natural environment(Haigh & Griffith, 2009). In addition Stone (1974) notes that although organizations as non-human entities they have been given many human rights. Therefore because organisations,…

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