ADMS 1000 Lecture Notes - Lecture 5: Stakeholder Management, European Association For International Education, Pharmaceutical Industry

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Tsasis

Document Summary

Profit maximization is the primary purpose of business. Busi(cid:374)ess"s p(cid:396)i(cid:373)a(cid:396)(cid:455) (cid:396)espo(cid:374)si(cid:271)ilit(cid:455) is to its o(cid:449)(cid:374)e(cid:396)s. Business is like a game and should be played by its own rules. Business should be ethically neutral and focus on profit as the primary measure of corporate success. Faith in value-free, self-regulating markets is a dangerous illusion. Business must acknowledge a network of stakeholders. A (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:272)o(cid:373)(cid:373)it(cid:373)e(cid:374)t to ethi(cid:272)al a(cid:374)d (cid:396)esponsible behavior will affect the success of the company by: enhanced brand and image reputation. Increase sales and customer loyalty: ability to attract and retain employees. Organizations need to acknowledge responsibility to all their stakeholders. The concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts. Business is expected to fulfill all its social responsibilities simultaneously. There will always be tensions between the different levels of social responsibility i. e. economic versus philanthropic.