Stakeholders Approach To Ethics Analysis

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According to Robert Lussier, a professor of Management at Springfield College, defines ethics as “the standards of right and wrong that influence behavior.” (45) It is well known that right and wrong isn’t always black and white, however, in business ethics – there is a fine distinction between lying to customers in order to turn a profit and maybe taking a bribe. Pairing ethics with advertising, though, does paint a very clear picture of what is right and what is considered wrong. Lussier states people commit unethical acts due to a combination of incentives, rationalizing (everyone does it, the boss told me to, it was for the good of the company), and circumstances. As a manager, the problem of false advertising can come about in two distinct …show more content…
This approach is when you make a decision in order to “create a win-win situation for all relevant stakeholders so that everyone benefits from the decision.” (Lussier 49) In other words, the stakeholders act as the quasi-ethical checks and balances. Lussier poses the question “would I be proud to tell relevant stakeholders my decision?” in order to determine the approach’s answer. In the case of false advertisement, would you want to report that to your stakeholders? The stakeholders are just as important to the company as the customers, breaking their trust would be detrimental to …show more content…
Management needs to control what is happening. Now, I don’t mean hovering over the shoulder control – but if that is what it takes to make employees behave ethically, then management should be prepared to do so. Management has different types of power, and this power can vary based on management style. However, one thing management does have is legitimate power. Lussier states legitimate power is dependent on “the user’s position power in the organization.” (327) Management has major legitimate power, and those in management positions could also have reward power, connection power, information power, and expert power. A manager could even use coercive power, or threats and punishments, to get the job down. However, if a manager is unaware of the situation, they cannot use their power to fix the

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