BUSINESS AND SOCIETY

Business and Society

Business and Society

Identification Of Stakeholders And Issues

Sam should accept the installation of the new processing technology witch protects the environment by refining the company's waste water .Implementing this new technology will increase the company's long- term profitability and reputation by providing enough power and ability to compete and operate efficiently in the future market.

This ethical solution is offered, after analyzing Sam's board of directors' decision to refuse the new technology due to its high turn over costs. The influences of this conclusion on the company's primary stakeholders is investigated carefully by utilising the 5-question ethical approach. The assessment has been made by comparing the profitability, legality, fairness and rightness of the company's conclusion and its impacts on foremost assemblies of stakeholders and their interests.

The Sam ( SAM) is a publicity traded company with good financial record and a profit of $1.7 million per year. Sam's original mill which is not designed with accordance to high environmental protection standards, is located near the Riverside, a community of 22,000 residents.(Brooks 371) The local community has been suffering from an unusually high rate of miscarriages and respiratory disorders since 1985.Therefore,in the same year, a research has been done on the water sample of the river which showed high level of industrial chemical called sonox.Also,it was discovered that the plant lab failed to mention the high sonox level in its monthly report to the managers. However, after announcing the CEO and the Board of Direcors, no grave activity has been taken to explain this problem and verified the situation. They failed to undertake an befitting ecological audit and even refused the possible answer of taking up a new technology to refine the company's waste water.(Brooks 372)

Application Of Ethical Theories

In fact, SAM's board of directors faced two major problems in adopting the new technology. First, the $70 million cost of applying the new technology which would sway the productivity and profitability of the company. Second, the topic of unemployment and job decrease that will happen, as a outcome of shutting down throughout the retrofit.

To analyze and asses SAM's decision, the 5-question framework will be used. This approach needs identifying the company's most significant stakeholders, prioritizing their interests and applying five inquiries to analyze the impacts of the company's conclusion on each stakeholders assembly (Tucker 348).

According to the Corporate Social Responsibility (CSR), companies are concerned for the well being of the people, society and the environment (Brooks 399). Therefore, identification of all the stakeholders and their concerns are quite significant for investigating companies' enterprise conclusions and double-check their long period success. The most important stakeholder groups that are impacted by SAM's decision can be recognized and ranked as follow.

The impact on this group measures in terms of profit or loss. In this case, current shareholders will face a short-term reduction in the bonus payments due to the high cost of taking up the new processing expertise ($70 million) and the probability of capability grade reduction during the ...