Business Ethics: Stakeholder Interests and Responsibilities

Stakeholder View Complexity

What do you think?

Stakeholder view is more complex. “Business ethics must clarify the notion of a legitimate interest in a company and the related notion of a justified stake in it. We must ask, then, what ethical responsibilities managers have, to whom and to what strength. The idea of multiple constituencies helps us focus on this question, but there remains much to say to clarify it.” (Audi, page 29).

Case Studies on Business Constituencies

On Monday, we are going to view a PBS Frontline documentary, “Life and Death in Assisted Living Care” (2013). The focus of the documentary is a Seattle-based chain of assisted living care centers called Emeritus. [BTW: “Emeritus” is a Latin term which, applied to a person, means that person “has fully earned honor” from society.]

Interested Parties Perspectives

In the documentary itself and in the two articles provided, you will hear and read from “interested parties.”

Perspectives in the Documentary

• In the PBS Frontline documentary itself, you will hear the perspectives of customers (the families of relatives who suffered from dementia and lived in Emeritus living centers).
• You will also hear the perspectives of managers and employees on what they heard, saw, did themselves, and learned about what others did.

Key Questions Raised

“Why are people dying from the operation of this company? Who or what is responsible? How can these kinds of deaths be prevented?”

Perspectives in Supporting Articles

• When you read the business news feature from the Seattle Post, you will hear the perspective of the community newspaper where the firm is headquartered: “Is this documentary going to have any long-term economic impact on the Seattle area?”
• When you read the Real Money column by John Dorfman, you will hear and read from the perspective of the shareholders: “Should I buy shares of this company, or not?”

Your Role: The Disinterested Impartial Spectator

You are asked to look at this case as if you were a member of a jury. Your charge is to be the disinterested Impartial Spectator. As a disinterested Impartial Spectator, I want you to assemble your knowledge.

Ethical Analysis Requirements

Consider the following:

Professional Ethics and Quality of Care

• What qualities make for “excellent” work in the care of elderly people with dementia?
• Is Emeritus providing this kind of excellent care? Why not?
• What kinds of ethical dilemmas do employees face in this case?

Applying Ethical Theories

Make this case the means for you to bring your ethical reasoning theories to life and to apply them:

• Is Emeritus meeting the standard of any of the four theories we studied?
• Is this a case of the greatest good for the greatest number?
• Does the Categorical Imperative apply?
• Is the firm showing virtue (ten Common Sense ethical principles) in its care?

Rights and Duties

• Who has positive rights, and who ought to have positive rights?
• Are the negative rights of the various stakeholders being respected?

Philosophical Viewpoints

Finally, what would the following thinkers think of this business?

Philosopher Assessments

• What would Aristotle think?
• What would Aquinas think?
• What about Adam Smith?
• What about Karl Marx?