1. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning C H A R A C T E R C O U N T S CHAPTER 7 Identifying Stakeholders

2. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 2 Identifying Stakeholders Many states now require motorcyclists to wear helmets—a law unpopular with individuals who believe they should have the freedom of choice. Most people recognize that wearing a helmet provides the rider with extra protection in a crash. But why not allow a rider to accept the extra risk of riding without a helmet?

3. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 3 Identifying Stakeholders A well-known ethical model, the utilitarian theory, states that an ethical action is one that provides the greatest balance of good over harm. Any persons or groups who will be affected by an action are called stakeholders. The impact of the action on all stakeholders should be analyzed.

4. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 4 Identifying Stakeholders Major stakeholders include owners, employees, customers, local communities, and society. Not every type of stakeholder will apply in each decision. However, the list of stakeholders provides a useful guide for individuals to search beyond themselves for the impact of their actions.

5. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 5 Identifying Stakeholders Analyze the impact on stakeholders involved in a motorcyclist’s decision to ride without a helmet.

6. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 6 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Motorcyclist Likely to have to pay higher insurance premiums. May incur more serious injuries or death. Enjoys the freedom of riding without the confinement of a helmet.

7. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 7 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Automobile drivers May suffer higher mental anguish if motorcyclist incurs more serious injuries. May drive more cautiously when near motorcyclists without helmets.

8. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 8 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Relatives Personal lives and careers may be negatively affected if accident disables motorcyclist. None

9. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 9 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Emergency personnel Risks to emergency personnel are greater because they are personnel more aggressive when responding to serious accidents. None

10. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 10 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Insurance companies Higher medical bills resulting from more serious injuries will companies hopefully be offset by charging higher insurance premiums. None

11. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 11 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive State May be subject to lawsuits by individuals who believe state was negligent in not passing a helmet law. More serious accidents require more emergency personnel and equipment, thus spending limited resources. None

12. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 12 Identifying Stakeholders Impact of a Motorcyclist’s Decision to Ride Without a Helmet StakeholdersNegativePositive Society Government programs will pay for medical bills and disability payments not provided by the motorcyclist’s insurance. None

13. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 13 Identifying Stakeholders This analysis clearly demonstrates how a seemingly personal decision—wearing a helmet—can affect many people. Individuals must make their own conclusions from this analysis. State legislators who have voted for helmet laws believed that benefits to the motorcyclist failed to offset the negative impact on so many stakeholders. Individuals who opposed helmet laws believe the benefits to the individual offset the negative impact on all other stakeholders.

14. C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning Chapter 7 SLIDE 14 Identifying Stakeholders Instructions Most colleges and universities have minimum academic standards for admission. Create a table that analyzes the positive and negative impact of admission standards. Are admission standards ethical?