Discussion question - Essay Example

Chapter 5 Environmentalists are trying to pass laws for oil spills that would remove all liability limits for the oil companies. This change would punish corporations financially. Is this approach the best way to influence companies to be socially responsible?The best way for companies to be socially responsible is for there to be some benefits involved. Corporations that are punished financially often resort to tactics that do not help the environment because they are looking to make a quick profit.

Instead of handing out punishments, the change itself should come from inside the corporations that do not care for the environment. If companies were able to realize that in the long run it is better to be environmentally-conscious, then I am sure that more companies would be socially responsible. It is in the self-interest of companies to be socially responsible because the decisions that they make and actions that are taken will reflect back on the company. For corporations that become well-known for damaging the environment, the consequences may be devastating.

Most consumers do not like buying a product from a company that disrespects society and looks to take advantage of people. Once a corporations actions are discovered, it is likely that customers will take their business somewhere else. This is why it is best for firms to come up with ways to protect the environment because it makes commercial sense rather than the government forcing these corporations to pay up.2- Lincoln Electric considers customers and employees to be more important stakeholders than shareholders.

Is it appropriate for management to define some stakeholders as more important than others? Should all stakeholders be considered equal? It is not appropriate for management to differentiate between stakeholders in order of importance. The fact is that each stakeholder has a vested interest in the business and so they should be treated with the same respect. Of course each stakeholder has a different role to play, but a business would not survive without the participation of all of the stakeholders.

Customers are the lifeblood of a business because without consumers choosing to part with the money, a business would not make any revenue. Employees also play a vital role because they are the face of the business and are the go-between for management and customers. It is up to employees to sell the brand so that the customer is willing to part with their money. On the other hand, while shareholders may not seem to play an important role in the day-to-day activities of the business, they are important too because they must raise capital, which is vital for any company that is either just starting out or is struggling financially.

All of these stakeholders should be treated equally because they each form a part of the overall success of a firm.