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Business Ethics Ethical Decision Making and Cases 9th Edition Ferrell Solutions Manual
Business Ethics Ethical Decision Making and Cases 9th Edition Ferrell Solutions Manual
Business Ethics Ethical Decision Making and Cases 9th Edition Ferrell Solutions Manual
CHAPTER 2
Stakeholder Relationships, Social
Responsibility, and Corporate Governance
SUMMARY
In this chapter, first we identify stakeholders’ different roles in business ethics. We examine the
relationships between businesses and various stakeholder groups and examine how a stakeholder
framework can help us understand organizational ethics. Then we define social responsibility and
examine the relationships between having a stakeholder orientation and social responsibility. Next, we
delineate how a stakeholder orientation helps to create corporate social responsibility. We then examine
corporate governance as a dimension of social responsibility and its role in structuring ethics and social
responsibility in business. The ethical decision making process is covered in order to provide an
understanding of the importance of oversight in responding to stakeholders. Finally, we provide the
steps for implementing a stakeholder perspective in creating both social responsibility and ethical
decisions in business.
LECTURE OUTLINE
I. Stakeholders Define Ethical Issues in Business
A. Building effective relationships is considered one of the more important areas of business
today. A stakeholder framework helps identify the internal stakeholders such as employees,
boards of directors, and managers and external stakeholders such as customers, special interest
groups, regulators, and others who agree, collaborate, and have confrontations on ethical
issues.
B. In a business context, customers, investors and shareholders, employees, suppliers,
government agencies, communities, and others who have a “stake” or claim in some aspect of
a company’s products, operations, markets, industry, and outcomes are known as
stakeholders.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1.
The relationship between companies and their stakeholders is a two-way street.
Stakeholders are influenced by business, but they also have the ability to affect
businesses.
a. Stakeholders apply their values and standards to many diverse issues—working
conditions, consumer rights, environmental conservation, product safety, and proper
information disclosure—that may or may not directly affect an individual
stakeholder’s own welfare.
b. Stakeholders provide both tangible and intangible resources that can be critical to a
firm’s long-term success.
2. When individual stakeholders share similar expectations about desirable business
conduct, they may choose to organize into communities.
3. Ethical misconduct can damage a firm’s reputation, causing stakeholders to withdraw
valuable resources. This gives stakeholders power over businesses.
C. Identifying Stakeholders
1. Stakeholders can be divided into two categories.
a. Primary stakeholders are those whose continued association is necessary for a
firm’s survival (employees, customers, investors, and stockholders, governments and
communities that provide necessary infrastructure).
b. Secondary stakeholders do not typically engage in transactions and are not
essential for its survival (the media, trade associations, and special-interest groups).
c. Although primary groups may present more day-to-day concerns, secondary groups
cannot be ignored or given less consideration in the ethical decision-making process.
2. The stakeholder interaction model indicates that there are two-way relationships
between the firm and a host of stakeholders.
D. A Stakeholder Orientation
1. The degree to which a firm understands and addresses stakeholder demands can be
expressed as a stakeholder orientation.
2. A stakeholder orientation comprises three sets of activities.
a. The organization-wide generation of data about stakeholder groups and assessment
of the firm’s effects on these groups.
b. The distribution of this information throughout the firm.
c. The organization’s responsiveness as a whole to this intelligence.
3. A stakeholder orientation is not complete unless it includes activities that address
stakeholder issues.
4. Responsiveness processes may involve the participation of the concerned stakeholder
groups. It can be viewed as a continuum as firms adopt a stakeholder orientation to
varying degrees.
II. Social Responsibility and the Importance of a Stakeholder Orientation
A. From the perspective of social responsibility, business ethics embodies values, norms, and
expectations that reflect concerns of major stakeholders, including consumers, employees,
shareholders, suppliers, competitors, and the community.
B. Many businesspeople and scholars have questioned the role of ethics and social responsibility
in business because legal and economic responsibilities are accepted as the most important
determinants of performance.
1. Adam Smith’s original form of capitalism, which reemphasizes stakeholder concerns and
issues, is regaining popularity in the 21st century.
2. Ethics and social responsibility cannot be just a reactive approach to issues as they arise.
3. A description of corporate social responsibility should include rights and duties,
consequences and values.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a public ly accessible website, in whole or in part.
10 Chapter 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Cambridgeshire 1847–57 and 1863 to death; senior steward of the
Jockey club and chairman of committee on condition of the turf in
1870. d. Cheveley park, Newmarket 8 Sep. 1874. Baily’s mag. xxii
125 (1872), portrait; I.L.N. lxv 260, 280 (1874), portrait, lxvi 307
(1875); Graphic, x 298, 309 (1874), portrait.
MANNERS, R H (only child of Russell Manners, M.P.) b.
London 31 Jany. 1800; ed. at royal naval college; entered navy 6
March 1816; captain 4 March 1829; retired admiral 12 Sep. 1865;
F.R.A.S. 1836, hon. sec. Feb. 1848 to 1858, foreign sec. 1858,
president 1868. d. 8 Henrietta st. Cavendish square, London 9 May
1870. Monthly notices of the R.A.S. xxxi 97–99 (1871).
MANNING, F (son of Wm. Manning of Billiter sq. London,
West India merchant). b. 1796; lived many years at Leamington,
where he erected protestant churches and contributed to all
charitable institutions; published A list of the various editions of the
Boscobel tracts, Leamington 1861; A series of views illustrative of
the Boscobel tracts 1861; A series of views to illustrate C. Cotton’s
The second part of the complete angler 1866. d. Byron lodge,
Leamington 15 Jany. 1880. The Warwickshire Times 24 Jany. 1880
p. 5.
MANNING, H E (brother of preceding). b. Copped hall,
Totteridge, Herts. 15 July 1808; ed. at Harrow 1822–7 and Balliol
coll. Oxf., B.A. 1830, M.A. 1833; fellow of Merton coll. 27 April
1832; C. of Wool Lavington, Sussex, Dec. 1832, R. of Wool
Lavington 10 June 1833; R. of Graffham, Sussex 16 Sep. 1833,
rebuilt both his churches; second rural dean of Midhurst 1837;
archdeacon of Chichester 30 Dec. 1840, resigned 22 Nov. 1850;
select preacher at Oxford 1842; a leader of the high church party;
received into the Church of Rome at the Jesuits’ ch. in Farm st.
mews by Father Brownbill 6 April 1851; ordained priest by
Cardinal Wiseman 14 June 1851; studied at Rome 1851–4; received
degree of D.D. from Pius IX. 1854; provost of the chapter of
Westminster 1857; superior of the Congregation of the Oblates of
St. Charles at 10 Westmoreland place, Bayswater 31 May 1857 to
1865; domestic prelate to the Pope and protonotary apostolic with
title of Monsignore 1860; archbishop of Westminster 30 April 1865
to death, consecrated at St. Mary’s, Moorfields 8 June and
enthroned there 6 Nov.; established the Westminster diocesan
education fund 1866; founded the pro-cathedral church of our lady
of victories, between 12 and 13 Newland terrace, Kensington 1867;
founded a University college at Wright’s lane, Kensington 1874,
which was closed 1878; founded the Diocesan seminary of St.
Thomas, Cupola house, King st. East, Hammersmith 1876; created
cardinal-priest by Pius IX. 15 March 1875, enthroned in church of
St. Gregory the Great on the Cœlian hill, Rome 31 March 1875,
received the cardinal’s hat 31 Dec. 1877; founded the temperance
society known as The League of the Cross 1868; member of royal
commissions on housing of the working classes 1884–5 and on the
elementary education acts 1886–7; author of Sermons 4 vols. 1842–
50; Sermons preached before the university of Oxford 1844;
Sermons on ecclesiastical subjects 3 vols. 1863–73; Miscellanies 3
vols. 1877–88; The grounds of faith, four lectures 1852, 6 ed. 1881,
besides 100 other works; he also edited, supplied prefaces to, and
was connected with 60 other works. d. Carlisle place, Vauxhall
bridge road, London at 8 a.m. 14 Jany. 1892. bur. St. Mary’s cemet.
Kensal Green 22 Jany. A. W. Hutton’s Cardinal Manning (1892),
portrait; Brady’s Episcopal succession, iii 378, 381–95 (1877);
Century Mag. May 1883 pp. 129–31, portrait; Strand Mag. ii 52–60
(1891), portrait; Illust. Times 20 May 1865 p. 309, portrait.
MANNING, J (son of James Manning of Exeter, Unitarian
minister). b. Exeter 1781; barrister L.I. 23 June 1817; went Western
circuit, leader of it many years; recorder of Sudbury 1835 to death;
recorder of Oxford and Banbury, Nov. 1837 to death; serjeant-at-
law 19 Feb. 1840; received patent of precedence April 1845;
queen’s ancient serjeant 1846, which dignity revived at his own
suggestion entitled him to a seat in the house of lords; judge of
Whitechapel county court, March 1847, retired on pension of £700,
Feb. 1863, was one of the 5 judges appointed Aug. 1856 to frame
rules for conduct of the practice and also scales of costs; author of
A digest of the nisi prius reports 1820; The practice of the Court of
Exchequer, revenue branch 1827, and other books; author with
Archer Ryland of Reports of cases in the court of King’s bench
1827–1830. 5 vols. 1828–37; author with T. C. Granger of Cases
argued and determined in the court of Common Pleas 1840–1845. 7
vols. 1841–6; author with T. C. Granger and J. Scott of Common
Bench reports 1845–1849. 8 vols. 1846–51; m. (2) 3 Dec. 1857
Charlotte dau. of Isaac Solly of Layton, Essex, and widow of Wm.
Speir, M.D. of Calcutta, she was author of Life in ancient India
1856 and Ancient and mediæval India 2 vols. 1869. d. 44 Phillimore
gardens, Kensington, London 29 Aug. 1866.
MANNING, J . b. Aldersgate st. London 1825; appeared at Queen’s
theatre, Tottenham st. under Charles James as a tragedian; acted at
Newcastle-under-Lyne; a parliamentary agent in London; appeared
at Theatre royal and Liver theatre, Liverpool; was at the
Marylebone, London, under E. T. Smith 1852; acted at the Grecian
Saloon in The two Gregories 1855; a well known low comedian at
The Grecian. d. 18 March 1890. The Players 6 July 1861 p. 1,
portrait.
MANNING, S (son of Samuel Manning of London, sculptor, d.
1847). Began to practise modelling 1829; received from Society of
Arts gold medal for a model of a statue of Prometheus, executed
this statue in marble and exhibited it at the R.A. in 1845, it was
engraved by B. Holl in the ‘Art Union’ for 1846; sculptor at 3
Union place, New road, London 1847–59, at 66 Marylebone road
1859–65; exhibited sculptures at the R.A. 1845–58. d. 1865.
MANNING, S (son of Mr. Manning, mayor of Leicester). b.
Leicester 1822; studied at Baptist college at Bristol 1840 and at
Glasgow univ.; baptist minister at Sheppard’s Barton, Frome,
Somerset 1846–61; edited the Baptist Mag. some years; general
book editor of Religious tract society 1863, one of the secretaries
1876 to death; LL.D. Chicago; author of Infidelity tested by fact, a
series of papers reprinted from The Church 1850; edited Selections
from the prose writings of John Milton 1862; projected the
Religious tract society’s series of illustrated books of travel 1870,
and wrote several of them. d. 35 Ladbroke grove, London 13 Sep.
1881. S. A. Swaine’s Faithful baptist men of Bristol college (1884)
327.
MANNING, W O (son of Wm. Oke Manning of Lloyd’s,
London, insurance broker). b. 1809; ed. at Bristol; entered his
father’s counting-house; author of Commentaries on the law of
nations 1839, new ed. 1875, being the first English treatise on the
subject; Remarks upon religious tests at the English universities
1846, reprinted from the Morning Chronicle. d. 8 Gloucester
terrace, Regent’s park, London 15 Nov. 1878. Athenæum 30 Nov.
1878 p. 689.
MANNING, W T . Member of firm of Hanslip and
Manning, solicitors 20 Thavies inn, Holborn, London 1844;
member of firm of Hanslip, Manning and Conworth, parliamentary
agents 12 Hatton Garden 1850–53; coroner of the Queen’s
household and of the Verge, May 1853 to death. d. The Old Farm,
New park road, Clapham park, Brixton 10 Jany. 1888. Law Times,
lxxxiv 214, 252 (1888).
MANNINGHAM-BULLER, S E , 1 Baronet (2 son of sir
Francis Buller-Yarde-Buller, 2 baronet 1767–1833). b. Churston
Ferrers, Devon 19 July 1800; ed. at Oriel coll. Oxf., B.A. 1821,
M.A. 1825; M.P. for North Staffs. 1837–41, contested North Staffs.
July 1847, M.P. North Staffs. 1865–74; M.P. for Stafford 1841–7;
sheriff of Staffs. 1853; took surname of Manningham before that of
Buller by r.l. 4 Jany. 1866; created baronet 20 Jany. 1866. d. Dilhorn
hall, Cheadle, Staffs. 22 Sep. 1882.
MANSELL, A L (2 son of sir Thomas Mansell 1777–1858).
b. 1815; entered navy 8 Sep. 1831; captain 1 Jany. 1865, retired 7
March 1866; retired V.A. 14 May 1888. d. 28 Feb. 1890.
MANSEL, C G . b. 1807; a writer in H.E.I. Co.’s service
30 April 1826; deputy accountant general in Calcutta 1841; member
of board of administration for the affairs of the Punjab 1849–50;
resident at Nagpur, Nov. 1850, retired on the annuity fund 1855;
author of Report on the settlement of the district of Agra 1842. d. 7
Mills terrace, West Brighton 19 Nov. 1886.
MANSEL, H L (eld. son of Henry Longueville Mansel
1783–1835, R. of Cosgrove, Northamptonshire). b. Cosgrove
rectory 6 Oct. 1820; entered Merchant Taylors’ school 29 Sep.
1830; scholar of St. John’s coll. Oxf. 11 June 1839, took a double
first 1843; B.A. 1843, M.A. 1847, B.D. 1852, D.D. 1867; took
private pupils 1843–55; fellow of his college 1839–55 and 1864–7,
hon. fellow 1868 to death, tutor 1850–64; reader in moral and
metaphysical theology at Magd. coll. Oxf. 1855; professor fellow of
St. John’s coll. 8 April 1864, and the first honorary fellow Oct.
1868; Bampton lecturer 1858; Waynflete professor of philosophy
1859; select preacher at Oxf. 1860–2 and 1869–71; examining
chaplain to bishop of Peterborough 1864–8; regius professor of
ecclesiastical history at Oxf. and canon of Ch. Ch. 5 Jany. 1867 to
Oct. 1868; dean of St. Paul’s 21 Oct. 1868 to death; author of The
demons of the wind and other poems 1838; Scenes from an
unfinished drama entitled Phrontisterion, or Oxford in the
nineteenth century 1850, 4 ed. 1852; Prolegomena logica, an
inquiry into the psychological character of logical processes 1851;
The limits of religious thought, eight Bampton lectures 1858, 5 ed.
1867. d. in his sleep at Cosgrove hall, the residence of his son-in-
law 31 July 1871, memorial window in north chapel of St. Paul’s
cathedral unveiled 25 Jany. 1879. J. W. Burgon’s Twelve good men
(1891) 321–66, portrait; Our bishops and deans. By Rev. F. Arnold,
ii 273–75 (1875); Church of England photographic portrait gallery
(1859), portrait 39; I.L.N. lix 127, 128, 311 (1871), portrait;
Quarterly Review, clix 1–39 (1885).
MANSEL, J . b. 1777; ensign 53 foot March 1795, lieut. colonel 12
Feb. 1818 to 9 Aug. 1827; C.B. 4 June 1815; sold out of the army
1855. d. Smeadmore, Dorset 29 Jany. 1863.
MANSEL, R C (youngest son of sir Wm. Mansel, 7
bart. 1739–1804). bapt. 12 Feb. 1789; ensign 10 foot 29 Jany. 1807;
captain 53 foot 8 July 1813; placed on h.p. 25 Dec. 1817; colonel of
68 foot 4 June 1857 to death; L.G. 26 Oct. 1858; K.H. 1832. d.
Sandgate, Kent 8 April 1864.
MANSELL, S T (3 son of Thomas Mansell of Guernsey). b.
Guernsey 9 Feb. 1777; entered navy 20 Jany. 1793; present at
battles of Cape St. Vincent and the Nile; commander of the Rose
sloop 1808–13 and of the Pelican 1813–4, captured 170 of the
enemy’s vessels; presented with order of the Sword by king of
Sweden 1812; captain 7 June 1814, retired 1 Oct. 1846; K.C.H. 1
Jany. 1837, knighted by Wm. IV. at St. James’s palace 1 March
1837; retired R.A. 9 Oct. 1849. d. Guernsey 22 April 1858.
MANSEL, T , baptized 14 Oct. 1783; entered navy 1798; served at
battle of Copenhagen; captain 12 Feb. 1834; retired admiral 18 Oct.
1867. d. Fareham, Kent 1 April 1869.
MANSFIELD, C B (son of John Mansfield, R. of
Rowner, Hampshire). b. Rowner 8 May 1819; ed. at Twyford and
Winchester; began residence at Clare hall, Camb. Oct. 1839, B.A.
1846, M.A. 1849; lived at a cost of a few pence a day and gave his
savings to the poor; studied at royal college of chemistry 1846–8;
discovered and patented the extraction of benzol from coal-tar 1848,
which laid foundation of the aniline industry; went to Paraguay
1852; lectured on the chemistry of the metals at royal institution
1851–2; author of Benzol, its nature and utility 1849; Paraguay,
Brazil and the Plate 1856; the naptha on which he was
experimenting boiled over and so scalded him that he d. Middlesex
hospital, London 26 Feb. 1855. Mansfield’s Paraguay (1856),
memoir pp. xi–xvi, portrait.
MANSFIELD, E . Sub-lieutenant royal naval reserve 1 Aug. 1890;
aimed at promoting the use of balloons and parachutes for both
military and naval warfare; made a successful ascent in his balloon
Wanderer at Bombay 13 Nov. 1891 when he descended by his
parachute from an altitude of upwards of 11,000 feet; ascended
again from Victoria gardens, Bombay 10 Dec. 1891, the balloon
burst at a height of about 400 feet and he fell to the ground mangled
and dead. Daily Graphic 12 Dec. 1891 p. 8, 31 Dec. p. 1, portrait.
MANSFIELD, H (5 son of John Mansfield, barrister). b. 1821; ed.
at Trin. coll. Camb., B.A. 1842, M.A. 1845; fellow of his coll.
1843–52; barrister I.T. 6 June 1853, went northern circuit; a writer
in the Morning Chronicle and Saturday Review many years; deputy
stip. magistrate for Liverpool 1872 to death. d. Liverpool 13 Aug.
1887.
MANSFIELD, J . b. 1775; a butcher at Debden, Essex; exhibited
himself at the Leicester square rooms, London about 1846 as the
‘Greatest man in the world.’ d. Debden, Essex 9 Nov. 1856. G.M. i
786 (1856).
N .—He measured 9 feet round, and weighed 33 stone of 14 lbs. When sitting on his chair
his abdomen covered his knees and hung down almost to the ground; when he reclined it was
necessary to pack his head to prevent suffocation.
MARLBOROUGH, J W S C , 6 Duke of (1
son of the preceding). b. Garboldisham hall, Harling, Norfolk 2
June 1822; styled earl of Sunderland 1822–40; ed. at Eton; matric.
from Oriel coll. Oxf. 15 June 1840, cr. D.C.L. 7 June 1853; styled
marquess of Blandford 1840–57; M.P. Woodstock 1844–5, 1847–
57; contested Middlesex 17 July 1852; he was the author of the
Blandford act 1856, 19 & 20 Vict. cap. 104 for subdivision of
extensive parishes in large towns; succeeded as 6 duke 1 July 1857;
lord lieut. of Oxfordshire 24 Sep. 1857 to death; lord steward of the
household 10 July 1866 to 1867; P.C. 10 July 1866; lord president
of the council 8 March 1867 to 9 Dec. 1868; K.G. 23 May 1868;
lord lieutenant of Ireland 28 Nov. 1876 to 28 April 1880; grand
master of the order of St. Patrick 12 Dec. 1876 to 20 April 1880; a
very popular viceroy; the duchess instituted an Irish famine relief
fund 1879 by which she collected £112,484, which was spent in
seed potatoes, food and clothing; she received the order of Victoria
and Albert 4 May 1880; he commenced a series of sales of the
family collections which were continued by his successor, the
Marlborough gems were sold in one lot at Christies’ for £10,000,
1875; author of A letter to sir George Grey on legislation for the
church of England. Westminster 1856; found dead on floor of his
bedroom 29 Berkeley sq. London 5 July 1883. bur. in chapel of