1. How is stockholder theory similar to and different from the stakeholder theory?

Stockholder Theory
People who invested in the company are called stockholder’s and they are the main source of
the orders in the company. Managers will be the one follows the orders according to the
stockholder’s direction. There is no other moral obligation in the company aside from
maximizing the money of the stockholders.

Stakeholder Theory

Stakeholders are treated as an end that means to recognize their right not a tool to treated as
means for accumulating funds, extracting labor and raw materials from.

Similarities
Both of the theory makes sure that they can benefit from their business and increase their
income.

2. How is the concept of legality related to the social contract theory of business?
Both are related because of an agreement of what business is ethically obligated to
enhance the welfare of society by satisfying consumer and employee interests without violating
any of the general canon of justice before the can be legally recognized as agents.

3. Can an amoral organization be ethical? If so, how? If not, why not?

No, because amoral organization only focuses on how to increase the productivity
and income. They just treat their employees as a tool for their company, and they are not given
the right. There are no set values other than greed for money because it is their priority.

4. What are the notable differences between legalistic corporation and a responsive one?
More concerned with adhering to the legality of an action rather than the morality of
the action. What is legal, for them it is ethical. They just obey the law and no more than that
while the responsive corporation helps and is more concern with the employees they operate
and local community where in they can profit.

5. Can you think of practical ways by which giant oil firms, mining and logging companies can
conduct their business without unethically exploiting the environment?
 We can prevent oil spills by making sure that all facilities including ships, aircrafts and
vehicles are designed to be able to carry a lot of oil so that it doesn’t fall in water. For mining
and logging companies, since it is their job to destroy some parts of the environment at least
they could try on replenishing the environment by returning its condition and that is through
planting trees again.