BUS 303 Chapter Notes - Chapter Manager: Constant Contact

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 303
• Professor: Kathleen Burke

Document Summary

Ethics and a manager"s obligations under stakeholder theory robert. Milton friedman: shareholders own a firm by virtue of owning equity shares & they wish to maximize value of those shares. Managers who fail to maximize shareholder wealth are violating a moral property right by. One obligation being stakeholder fairness spending (cid:523)if not stealing(cid:524) shareholders" $ Usu this obligation takes form of dividends/ in shareholders" equity. If orgs are entities capable of bearing legal obligations, also capable of bearing moral obligations. At minimum, stakeholders = groups from who org has voluntarily accepted benefits, & to whom org has incurred obligations of fairness. Normative/legitimate stakeholders = owed obligation by org & its leaders. Derivative stakeholders = holder power over org & may exert beneficial/harmful influence. Stakeholder interaction & discourse should be responsibility of managers at all levels of org, not just specialized departments.