Stakeholder

The shareholder and stakeholder theories are two popular frameworks used to project the purpose of business and its good obligations. With reference to the quote above, some(prenominal) theories seem rational and transport strong support. However, a prevalent failing of both is typically how humans interpret and put through the theories in contemporary business environments. For instance, Enron was so focused on the raising the price of their acquit that they cooked the books to produce fake dinero1. This paper will provide a description of all(prenominal) theory and, analyze ethical justifications and major objections to each theory. The ethical justifications will be based on pertinent examples - policies and actions, of businesses such(prenominal) as Wal-Mart. Based on this analysis, the paper will grapple that the stockholder theory is more justified and maximally back up by ethical theory justification. An important point to step is that the two theories are extreme endpoints on a continuum of theories. The source of this paper will favor the stockholder theory with peculiar(prenominal) leaning towards the theory of moral minimums. The stockholder theory is the authoritative view of the purpose of business, and candidly states that business exists to serve the interests of the stockholder by increasing cabbage from their investment.

Per the stockholder theory, practitioners of the theory enjoy the moral high ground as long as their business does not resort to coercion or fraud. Nobel-prize gentle economist, Milton Friedman, takes the view that stockholders are owners of the business and are entitled to its profits while managers are agents of the stockholders, and do not have any right to donate money to charity. This viewpoint is embodied in the legal opinion Dodge v. Ford Motor guild, in which the court ruled that the benefits of higher salaries for employees and lower motorcar prices for consumers could not take priority over stockholder interests. The stock chart below illustrates how Wal-Mart, one of... If you want to get a full essay, order it on our website: Orderessay

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