PHILOS 2N03 Lecture Notes - Lecture 9: Stakeholder Theory, Business Ethics, Opportunity Cost

• School: McMaster University
• Department: Philosophy
• Course: PHILOS 2N03
• Professor: Jennifer Szende

Document Summary

Suggests that the minimal standard is something that is clear that everyone agrees on. I(cid:374)(cid:272)ludes: do(cid:374) t (cid:271)reak the rules (cid:894)writte(cid:374) a(cid:374)d u(cid:374)writte(cid:374)(cid:895) Not optional: to violate the minimal standard is often to break the law. Ideal standard: do (cid:862)good(cid:863) (cid:862)good(cid:863) (cid:272)a(cid:374) (cid:271)e further a(cid:374)alyzed. To be far above the far, that there is no danger of falling through the minimal threshold. All business decisions affect a wide variety of people, not just shareholders. These effe(cid:272)ts (cid:272)a(cid:374) i(cid:374)(cid:272)lude (cid:862)(cid:271)e(cid:374)efits(cid:863) a(cid:374)d (cid:862)har(cid:373)s(cid:863) On a shareholder a(cid:272)(cid:272)ou(cid:374)t (cid:894)su(cid:272)h as fried(cid:373)a(cid:374)(cid:895) (cid:862)(cid:271)e(cid:374)efits(cid:863) to shareholders are the pri(cid:373)ary (cid:272)o(cid:374)(cid:272)er(cid:374), (cid:271)ut these are (cid:272)o(cid:374)strai(cid:374)ed (cid:271)y (cid:862)har(cid:373)s(cid:863) to others. There are many harmful and beneficial effects of any business decision. Some but not all these are accounted for in terms of profits. Some but not all can be translated into profit/bottom line terms. Exclusive focus on bottomline for shareholders ignore other forms of harm and benefit. Based on purchases, expansions, hiring, promotion, firing.