Comparison of Stakeholder Theories

Comparison of Stakeholder Theories Compare and contrast stakeholder and stockholder theories. Discuss how each relates to ethics and regulation. The shareholder theory was described initially by Milton Friedman and it states the traditional view that the maximisation of financial value for shareholders is the ultimate goal of the business (Mansell, 2013). The central idiom of shareholder theory implies that long-term cash surpluses increase shareholder value (Rausch, 2011). Smith (2003), writes describing some of the misconceptions regarding Shareholder theory clarifying that the increase of profits is clearly restrained by legality. Additionally, there exists the perspective that under shareholder theory, charitable donations are discouraged as they would directly reduce profits however they are supported within the constraints of available capital. Stakeholder theory was described initially by Edward Freeman and it states that a company has a duty of responsibility to an extended group described as stakeholders. Stakeholders include all individuals which may be affected by the activities of the company for example shareholders, employees, customers, and competitors. According to Kaler (2006), stakeholder theory has two main ethical functions-firstly, it proposes distributive fairness within a capitalist framework, by distribution of profits to non-shareholder interests as opposed to the shareholders only, and secondly it promotes the concept of corporate social responsibility which produces ethical pressure for companies to adopt obligations to society that transcend shareholder appeasement. Stakeholder theory has gained popularity in light of recent corporate scandals (Reynolds et al, 2006). According to Smith (2003) the fundamental distinction between shareholder and stakeholder theory is that stakeholder theory stresses that stakeholder interests are considered even if profits are diminished as a consequence however as all interests are represented and as this includes the shareholders, there is still a requirement to show a profit without which the business would fail. According to Mansell (2013), it is possible for an organization to maintain and uphold the ethical principles, described in the shareholder theory model, whilst simultaneously upholding those described in the stakeholder theory model by modifying the traditional credo to extend the tenet regarding sole stakeholder focus being maximization of shareholder profit. This is achieved by questioning if the concept of corporate duty to achieve happiness of any non-shareholder contravenes shareholder theory. Mansell maintains that the original shareholder theory is effectively outdated and that his modifications would allow both theories to coexist. 2. List five normative ethical theories and provide a one-paragraph summary of each. How are they similar? Different? You may choose from the following: virtue ethics, deontology, consequentialism, welfarism, egoism, relational ethics, role ethics, and pragmatic ethics. Deontological theory is determined by the categorical imperative and states that one should act only on axioms which can be reasoned to be universal laws of nature and to treat humanity in an individual as the end and not the means. Thus ethical behaviour is based on intent. The virtue approach considers virtuous behaviour such as honesty, kindness, and generosity. When looking at behaviour from an ethical perspective the question is asked are these actions reflective of virtuous behaviour and is it representative of the type of business the bank aspires to. This is similar to deontological theory from the perspective in that its characteristics are intentional. According to Melchert (2006), consequentialism is a utilitarian moral philosophy in which actions are categorized as morally acceptable or unacceptable according to their consequences. This theory opposes Deontological theory in that the deontological approach is to judge according to the intention of the individual rather than the consequence of the action whereas the action in consequentialism is absolute. According to Gravel and Moyes (2013), welfarism describes a number of normative approaches which rank social states based upon the distribution of welfare levels. An prime example of one of these approaches is utilitarianism, Utilitarianism has its roots in early Greek philosophers who reasoned that the best life is one that causes the least amount of suffering. Utilitarian theory states the principle focus is maximizing utility. In the field of business ethics, utility equates to the increase in happiness with the reduction of suffering. Ethical egoism is often described as the traditional business model (Debeljak and Krkac, 2008) who debated that opposing the concept of Friedman that the only goal in business is the generation of profit, there are ethics in business namely egoistic business ethics. As is the case in business and other interests, additional factors are essential besides self-interest such as the right to exercise freedom of choice and continuous concern. Self-interest can only be achieved if all conditions are met therefore if the individual maintains the conditions for themselves, they are met for all. References Debeljak, J., Krkac, K. (2008). Me, myself I: practical egoism, selfishness, self-interest and business ethics. Social Responsibility Journal; Bingley4.1/2 (2008): 217-227. Gravel, N., Moyes, P. (2013). Utilitarianism or welfarism: does it make a difference? Social Choice and Welfare; Heidelberg40.2 (Feb 2013): 529-551. Mansell, S. (2013) Shareholder theory and Kants duty of beneficence. Journal of Business Ethics: JBE; Dordrecht117.3 (Oct 2013): 583-599. Melchert, N. (2007). The great conversation: a historical introduction to philosophy (5th Edition). New York: Oxford University Press. Rausch, A. (2011). Reconstruction of decision-making behavior in shareholder and stakeholder theory: implications for management accounting systems. Review of Managerial Science; Heidelberg5.2-3 (Jul 2011): 137-169. Smith, H. (2003). The shareholders vs. stakeholders Debate. Retrieved March 18, 2017, from http://sloanreview.mit.edu/article/the-shareholders-vs-stakeholders-debate/

Business Communication in Today’s World

INTRODUCTION Definition Communication is defined as the process of transferring information and meaning between senders and receivers, using one or more written, oral, visual or electronic channels. Simply put, communication is the exchange of information between people. It is important to get feedback from your audience and vice versa for the process of communication to take place effectively. The feedback can be either positive or negative. Business communication is any communication used in an organisation with an intention to promote a product, improve service or with the intention to make a sale. This type of communication also occurs within the organisation between the management and employees. It has purpose and a lot of attention is given to detail. Business communication has undergone a lot of transformation as a result of the growth of information technology that has changed the whole concept of communication. In the past, businesses had a model of communication that left very little room for interaction and conversation with the receiver of the message. Currently the model that works and is now used by most organisations is one that gives room to both conversation and interaction with the receivers. BODY Communication is very vital in any organization. Like blood in our bodies, it is the channel that gives life to the organisation and without it, organisations would not be functional. There are two types of business communication in an organization 1. Internal Communication 2. External Communication Internal communication This defines communication that occurs within an organisation. It occurs between management and departments and between the employees of the organization. This type of communication may be formal or informal. Internal communication is vital because it helps in increasing job satisfaction, productivity and profits. It is also a platform for employees and management to air and address grievances. There are three types of communication under internal business communication a) Upward Communication b) Downward Communication c) Horizontal communication a) Upward communication Upward communication is the flow of information from subordinates to superiors or from employees to management. By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom. Upward Communication is a means for staff to: * Exchange vital information * Offer ideas Express enthusiasm * Achieve job satisfaction * Provide feedback Diagram showing upward communication in a bank b) Downward Communication This is the flow of information from the person or people who are at the top of the organisation to their subordinates. Downward communication generally provides information for direction and guidance e. g. Instructions on how to do a task. This type o f communication is needed in an organization to: * Transmit important information * Give instructions * Announce decisions * Seek cooperation * Provide motivation * Increase efficiency * Obtain feedback c) Horizontal communication Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to co-operate or collaborate. Communication among employees at the same level is crucial for the accomplishment of work. Horizontal Communication is essential for: * Solving problems * Accomplishing tasks * Improving teamwork * Building goodwill * Boosting efficiency External Communication This type of communication occurs between the organisation and the public. This includes suppliers, clients or customers, shareholders or investors and with other organisations. Social networks have transformed external communication. The popularity of Facebook, Twitter, LinkedIn and other social networks have made them effective tools for communication that organisations now use. External communication leads to: * Increased sales volume * Public credibility * Operational efficiency * Achievement of organisational goals * Customer satisfaction METHODS OF COMMUNICATION There are different communication methods that are used in business communication. We have verbal, written and visual methods that come in different forms. These forms of communication have undergone transformation with the introduction of information technology. For example verbal forms of communication like telephone calls have been improved to incorporate video conferencing. It is important to choose the right method and form of communication if you are to effectively pass information to your audience. The choice is determined by several factors: * Urgency – How important is the information to the recipient and what would be the effect of delay? * Security and privacy – Are the contents of the message classified? Nature and complexity – does the message contain detailed/ technically complex information that could be misunderstood? * Number of recipients – is the message intended for one person, a selected group or everyone? * Record – Will evidence/proof of communication be needed? * Distance – Is the message for internal use only or does it need to be transmitted further? * Impression/ appea rance – is the message required to create a favorable impression by its style/ quality/ appearance? If so, are the recipient’s taste known? * Feedback – will an instant response be needed from the message? Cost –How much will it cost you to pass this information and is it worth it? Forms of communication include: * Memos * Email * Letters * Newspapers/magazines * Television * Telephone * Meetings Information technology has transformed business technology and today there are several tools that are available for communication both internal and external communication. Some of these tools include: * Wireless network * Electronic presentations * Virtual meeting spaces * Wikis * Voice technology * Video conferencing CONCLUSION Business communication should be effective if the organization is to achieve its goals and desired results. The purpose of business communication is to pass information to the receiver and receive a response. Effective communication is communication that ensures that this happens in an efficient way. For information to be effective, it has to be able to: * Provide information that is practical – it should be able to give the receiver information that they can apply in their daily life. * It should give facts and avoid vague impressions – Language used should be strong and give clear and accurate information. In the case of an argument it should give evidence to support the conclusion reached. The presentation should be concise and efficient this can be achieved by summarizing and highlighting the main points Business communication is important because it helps in: * Decision making – business communication makes the process of decision making faster because reliable information has been received. * Solving problems – Effective communication ensures that problems are solved faster because the problems have already been understood. * Foreseeing potential problems that the business could experience * Developing stronger relationships business relationships * Developing exceptional marketing messages It is important to note that business communication is different from social communication with friends and family. Business communication is complicated and requires skill and attention. As result there are challenges that rise when trying to ensure that an organization has effective business communication. Some of these challenges include: Globalization in business and the diversity of the workforce – Businesses can presently be able to connect with the world and sell products across borders. Although, the opening up of the market is an advantage to the business, it presents new challenges in communication. The organization should find methods to be able to effectively communicate with the new market and diverse workforce that these new opportunities present. The escalation of value given to business communication – We are living in the Information age and competition in the marketplace is determined by how well business information is relayed by the organization. It is important to acquire information on competition, customer needs and the rules and regulations. Growth of technology – Business communication today is dependent on technology and technology is very dynamic. For an organization to be relevant it has to have the ability to transform at the same pace that technology is advancing. It is therefore important to use it productively. We should also remember that technology is just a tool for communication, not a replacement to think or communicate for an organization. Increasing reliance on teamwork – teams are vital in an organizational structure and for teams to produce results there is a need for them to have efficient communication. This sometimes presents challenges but developing great communication lines ensures that teamwork is successful. Business communication is growing; innovations are being made daily to make communication more efficient. Conventional ways are being transformed to incorporate technology or being discarded completely for lack of relevance. All this is done in an effort to improve business and increase productivity. REFERENCES Bove`e, L. , and Thill, V. (2010). Business Communication Today. Upper Saddle, NJ. Pearson Education Inc. Publishing.

Analyze the Ways in Which Techonology, Government Policy,...

In the period 1865-1900, technology, government policy, and economic conditions all changed American agriculture a great deal. New farming machinery had a large role in the late 19th century, giving farmers the opportunity to produce many more crops than they had ever been able to previously. The railroads had an enormous influence on agriculture. They were able to charge the farmers large fees, expenses that farmers barely had enough to cover, in order to transport their goods throughout the expansive country. The booming industry also changed American agriculture, creating monopolies and gaining incredible wealth with which the farmers simply could not compete. Economically, the monetary policy along with the steadily dropping prices of†¦show more content†¦Document ‘C’ shows how the farmers eventually got prices to lower in Illinois, although not all states were as successful in putting restrictions or limits on the prices. The Supreme Court used the 14th ame ndment to favor the large industries and monopolies, like the railroad. In most cases it was ruled that profits (even excess ones) are a property right and states cannot regulate these profits because it goes against due process and equal protection under the law. These rulings made it very hard for individual states to interfere and put any limitations on these high prices. One of the most heated debates of the time period was over the gold standard monetary policy. In Document ‘E’ the crop-lien system or sharecropping is demonstrated. It shows how the farmers are profiting little or no money at all by the 1880’s, however the government, along with the wealthier citizens, were trying to implement a gold standard, eliminating silver currency altogether and creating some deflation. The farmers, most of whom were already in debt, advocated strongly against this monetary policy. They were in favor of a bimetallistic system. The Farmer’s were already indebted to the people they leased their land from, and if there was a monetary policy, the amount of money they owed would remain the same, however the value of that money would increase. Document ‘J’ is a clear opposition to the monetary policy by the farmers. Through the fight

Reverend Arthur Dimmesdale And The Scarlet Letter

Reverend Arthur Dimmesdale and the Scarlet Letter As the loved pastor whose undisclosed guilt destroyed him and the secret lover of Hester Prynne, Arthur Dimmesdale is an interesting character in The Scarlet Letter and plays an important role throughout the book. Dimmesdale is a â€Å"Reverend† and pastor at the church. His interactions with the other main characters in the book such as Roger Chillingworth, Hester Prynne, and Pearl are secretive and painful, and display his inner pain. Hester had committed adultery, against her husband with one that she would not name! The scarlet letter would burn forever on her chest and secretly, on his, as the guilt sears him and kills him slowly. First of all, Dimmesdale was known as an excellent pastor throughout his life, only increasing in performance as he aged, even though he was really breaking inside. In Characters in ‘The Scarlet Letter’ by Edward Wagenknecht, Wagenknecht says that Dimmesdale â€Å"know the Puritan theology as [Hester] does not know it, and has a far firmer grasp upon the Puritan faith†¦Ã¢â‚¬ (Wagenknecht 5). In the beginning of the book, when we first encounter Dimmesdale, he is somewhat of an apprentice to Reverend Wilson. Hester is brought to the scaffold, after she has walked the streets in shame, and now Dimmesdale stands before her. The Reverend asks Dimmesdale to ask Hester who her fellow adulterer is. Even after multiple requests to Hester, she still refuses, and Dimmesdale nearly resorts to begging. â€Å"...Take heedShow MoreRelated Guilt and Shame in Hawthornes The Scarlet Letter1098 Words   |  5 Pagesall three of the main characters in The Scarlet Letter, but how they each handle their sin will change their lives forever. Hester Prynne’s guilt is publicly exploited. She has to live with her shame for the rest of her life by wearing a scarlet letter on the breast of her gown. Arthur Dimmesdale, on the other hand, is just as guilty of adultery as Hester, but he allows his guilt to remain a secret. Instead of telling the people of his vile sin, the Reverend allows it to eat away at his rotting soulRead MoreAdversity In The Scarlet Letter1527 Words   |  7 PagesAUDRAIN†¯6 Sion Audrain Ms. Cady Oct. 23 2017 Nathaniel Hawthorne s†¯The Scarlet Letter:†¯The Effects of Adversity Merriam-Webster s Dictionary defines adversity as, a state or instance of serious or continued difficulty or misfortune; ex. showing courage in the face of adversity (Merriam-Webster). Unfortunately, life is not fair. Sometimes, people are faced with serious misfortune and must adapt to survive. And sometimes in this state of adaption, the person will learn new skills from theRead MoreHester Prynne Analysis1015 Words   |  5 Pagescommunity, only to be accompanied with a constant reminder of the result of her act of love and passion, an act which was also adultery. Her character is revealed through her isolated life with her daughter, Pearl, but will never be forgotten by the scarlet letter upon her bosom. Additionally, Hester Prynne connects to the main themes of the novel, frustration and guilt coagulated with sin by internally struggling with the effects of her sin. Hester Prynne exemplifies many of the characteristics of aRead MoreSin Theme In Scarlet Letter775 Words   |  4 PagesMultiple themes are presented in the book, The Scarlet Letter, written by Nathaniel Hawthorne. One prevalent theme found in the story is that sin can happen to anyone and it is essential to life. Throughout the book the reader experiences the committing of a sin through a variety of characters: Hester Prynne, Reverend Arthur Dimmesdale and Roger Chillingworth. From the beginning of the book to the end we notice how each of the characters wrongdoings takes an emotional and physical toll on them asRead More Greatest Sinner in Nathaniel Hawthornes The Scarlet Letter Essay1267 Words   |  6 PagesThe Greatest Sinner in The Scarlet Letter      Ã‚  Ã‚  Ã‚  Ã‚   Mankind is prone to some degree of sin. A question that has always plagued mankind is how one can achieve redemption from sin. Any sin becomes compounded when the perpetrator does not take responsibility for it. In the book The Scarlet Letter by Nathaniel Hawthorne, perhaps the greatest sinner was Reverend Arthur Dimmesdale.    Many of Hawthornes works center around what is right or wrong, and the consequences of breaking the basicRead MoreThe Scarlet Letter1659 Words   |  7 PagesThe Scarlet Letter The Scarlet Letter is a well known novel written by Nathaniel Hawthorne. The novel is composed and written in Salem and Concord, as well as Boston, Massachusetts in the late 1840s. The narrator of the novel is in an omniscent state, meaning he knows more about the characters than the characters know about themselves. Although the narrartor is omniscent, he also makes sure to include his ideas and opinions on situations, making him also greatly subjective. Being subjectiveRead MoreJosh Lyon. Mrs. Voshell. Honors English 10. 6 January 2017.979 Words   |  4 PagesJosh Lyon Mrs. Voshell Honors English 10 6 January 2017 Symbolism in The Scarlet Letter Within The Scarlet Letter Hawthorne uses symbolism, â€Å"the use of symbols to represent ideas† (Bell 10), affluently. The amount of symbolism Hawthorne uses could lead some to believe that The Scarlet Letter is in fact an allegory. Nearly every object in Hawthorne’s novel is symbolic. Hawthorne uses everyday objects and places to symbolize many main themes, concepts, and ideas in the lives of Hester and Pearl asRead MoreAnalysis Of Nathaniel Hawthorne s Scarlet Letter 1392 Words   |  6 PagesAP Short Form â€Å"Scarlett Letter† AP English Language and Composition Title: Scarlet Letter Author and Date of Publication: Nathaniel Hawthorne, Publication in 1850 Significance of the Title: This book was titled The Scarlet Letter because the plot of the novel is centered around the question of who, besides Hetser is the other adulteress. Main Characters: Hester Prynne - The character of Hester is labeled as an adulteress, and is condemned to wear the scarlet letter for the rest of her daysRead MoreComparing The Scarlet Letter by Nathaniel Hawthrone and The Crucible by Arthur Miller1394 Words   |  6 Pagesliterature that display both aspects of this society very accurately are The Scarlet Letter, by Nathaniel   Hawthorne, and The Crucible, by Arthur Miller. The Scarlet Letter displays a society that treats two people very differently who commit the sin of adultery together. The woman, Hester Prynne, admits her sin, is forced to always wear a scarlet letter A on her bosom, and is ostracized from society. The man, Reverend Dimmesdale, hides his sin from the world, is almost worshipped by the townspeople,Read MoreA Selfish and Lazy Society: The Scarlett Letter Essay513 Words   |  3 Pagesbetter results. This is shown in The Scarlet Letter, written by Nathaniel Hawthorne, with Reverend Arthur Dimmesdale and Roger Chillingworth. Reverend Arthur Dimmesdale takes the easy way out and does not tell the community that he is the one that committed adultery with Hester Prynne, which led to more pain than he saved. Him and Hester Prynne committed adultery together and as a result of that, they have a daughter, Pearl. Hester is sentenced to the scarlet letter, which is an â€Å"A† upon her chest