1. C H A P T E R 2
Stakeholder Relationships, Social Responsibility, and Corporate Governance

2. Chapter Objectives To identify stakeholders’ roles in business ethics
To define social responsibility
To examine the relationship between stakeholder orientation and social responsibility
To delineate a stakeholder orientation in creating corporate social responsibility
To explore the role of corporate governance in structuring ethics and social responsibility in business
To list the steps involved in implementing a stakeholder perspective in social responsibility and business ethics

3. Chapter Outline Stakeholders Define Ethical Issues in Business
Social Responsibility and the Importance of a Stakeholder Orientation
Social Responsibility and Ethics
Corporate Governance Provides Formalized Responsibility to Stakeholders
Implementing a Stakeholder Perspective

4. Relationships and Business
Building relationships is one of most important areas in business today
Stakeholder framework
Helps identify internal and external stakeholders
Helps monitor and respond to needs, values, and expectations of stakeholder groups

5. What Is a Stakeholder? Customers Investors Employees Suppliers
Government agencies
Communities

6. Primary vs. Secondary Stakeholders
Primary stakeholders: Those whose continued association is necessary for a firm’s survival
Secondary stakeholders: Are not essential to a company’s survival

7. Social Responsibility and Ethics
Social responsibility can be viewed as a contract with society
Economic
Legal
Ethical
Philanthropic
Business ethics involves carefully thought-out rules (heuristics) of conduct that guide decision making

8. Corporate Governance Accountability Oversight Control
Shareholder model
Stakeholder model

9. Implementing a Stakeholder Perspective
Assessing the corporate culture
Identifying stakeholder groups
Identifying stakeholder issues
Assessing organizational commitment to social responsibility
Identifying resources and determining urgency
Gaining stakeholder feedback