Question

Identify two benefits of using a stakeholder approach in ethical decision-making. How would using a stakeholder management approach help you plan and/or solve an ethical issue in your working life? Please explain in detail Minimum 500 words

Answer 1

SOLUTION

TWO BENIFITS OF USING STAKEHOLDERS APPROACH IN ETHICAL DECISION MAKING

* If we carry the idea of stakeholder to the extreme , every person is a stakeholder of every company. The first step in the stakeholder management , the process of accurately assessing stakeholder claims so an organisation can manage them effectively , is therefore to define and prioritize stakeholders significant to the firm. Then it must consider their claims. Ethically managers are responsible to as many stakeholders as possible . This may become a positive benefit of using a stakeholder approach in ethical - decision making. However time and resource limitations require organizations to prioritize claims as stakeholders needs rise and fall. It further adds a benefit that Any stakeholders can have a particular business or institution. It depends on particular stakeholders, of course we can safely say that all stakeholders expect a form of satisfaction from the organisation.

* On the other hand, they are employees , they are typically hope for interesting tasks , a safe work environment , job security and rewarding pay and benefits. If yet again the stakeholders are the members of the community and the company may not harm the physical environment or degrade the quality within it .So the task confronting an organisations management begins with understanding these multiple and sometimes conflicting expectations and ethically deciding which stakeholders to focus on will be the stakeholders prioritization.

* Creating positive relationship with the stakeholders results in streamlined process of decision making.

* Further, it addresses the expectations of the stakeholders.

HOW THE STAKEHOLDER MANAGEMENT APPROACH HELP TO PLAN / SOLVE THE ETHICAL ISSUE

The using of stakeholder approach help to solve or plan an ethical issue in the working life by developing a collaborative environment which creates a room for diplomatic discussion and compromise to solve the ethical problem. Ethical issues do exist , wherever ones action affect others. In a workplace, a managers decisions might effect employees, customers, suppliers, creditors and the stakeholders . They act as an stakeholders of an organisations and identifying similar alternative courses of action can help to solve or resolve the ethical problem. The cautious handling of workplace ethics issues can resolve personal and business dilemmas. Ethical reasoning skills are essential to solve the ethical decision making problem.

Ethical decision - making in the workplace is fraught because stakeholders of an organization may have competing demands. Investors and creditors expect to receive truthful information while the top management may believe their own personal wealth and image is tied to putting the best face on the financial statements. It takes courage or perseverance for the decision makers to avoid the obstacles and may be in their play and follow their conscience. Otherwise their conscience may not bother them if unethical actions are taken.

Finally, managers should avoid the proverbial ethical slippery slope where once a decision is made that violates ethical tenets the decision maker starts to descend the slippery slope and it is difficult to reverse to reclaim the high road. Unethical decisions can lead to cover up and more unethical decision can down the road. Remember ethics is what you do when no one is looking . In other words you are what you do and ethical people are motivated to do the right thing and not make a decision based on selfishness egoism.